Banknotes of The Rupiah - Formation of Bank Indonesia From De Javasche Bank: Second Republik Indonesia Banknotes - 1965–1968: First Series of Banknotes ('Soekarno') of The 'new Rupiah'

1965–1968: First Series of Banknotes ('Soekarno') of The 'new Rupiah'

The hyperinflation of the early 1960s resulted in the pronouncement of the 'new rupiah' supposedly worth 1,000 of the old rupiah.

The withdrawal of the old money meant the issue of an entirely new set of banknotes, by Presidential decree of 13 December 1965. The decree authorised Bank Indonesia to issue fractional notes for the first time (although the 1 and 2½ rupiah notes were still issued by the government itself), in denominations of 1, 5, 10, 25, and 50 sen showing 'Volunteers', dated 1964. Due to the fact that the rupiah was only devalued about 10, rather than 1000 times, they were worthless on issue, and many millions of notes never entered circulation.

The remaining notes all featured President Soekarno on the obverse, and various dancers on the reverse; this series was issued by 'Republik Indonesia' in 1 and 2½ rupiah, dated 1964, and Bank Indonesia dated 1960, in 5, 10, 25, 50, and 100 rupiah were issued ('1960'-dated Bank Indonesia notes of 5, 10, and 100 rupiah were already circulating in Irian Barat and Riau, along with '1961'-dated 'Republik Indonesia notes of 1 and 2½ rupiah in those same places); the notes from 500 to 10,000 rupiah were deemed unnecessary due to the devaluation.

To complete the devaluation, older notes (largely worthless by this point) were withdrawn over 1965–1966.

By 1967, due to the limited nature of the devaluation, it had proved necessary to add 500 and 1,000 rupiah notes, in the same design.