Jakarta. Bank Indonesia Deputy Governor Ricky Perdana Gozali said digital money and physical cash will continue to coexist, with neither expected to replace the other as Indonesia accelerates the digitalization of payments.

“Digital and cash rupiah, physically or economically, do not replace each other. They are not substitutes but complements,” Ricky said at a press conference following the central bank’s board of governors meeting in Jakarta on Wednesday.

Ricky said Bank Indonesia would continue developing both digital payment systems and physical rupiah to give consumers a choice in how they conduct transactions.

Cash circulation continues to grow, although at a slower pace as digital payments become increasingly widespread. At the same time, digital transactions have recorded strong growth as consumers and businesses increasingly adopt electronic payment instruments.

The central bank is also seeking to improve public understanding of the rupiah amid the shift toward digital payments through its rupiah campaign.

Ricky said the campaign emphasizes the rupiah’s role as a symbol of national sovereignty, legal tender and a unifying force. It also promotes responsible spending, financial prudence and a better understanding of payment transactions.

Bank Indonesia recorded 5.50 billion digital transactions in July, up 28.69% from a year earlier.

Transactions through internet banking and mobile applications increased 9.39% and 24.25%, respectively, while transactions using the QRIS national QR-code payment system surged 82.42% year-on-year, supported by growth in users and merchants.

The central bank’s retail payment infrastructure also continued to expand. Transactions through BI-FAST, Indonesia’s real-time retail payment system, reached 546 million in July, up 31.62% year-on-year, with transaction value totaling Rp1,355 trillion ($76 billion).

Meanwhile, high-value transactions processed through BI-RTGS totaled 990,000, an increase of 3.12% from a year earlier. Their value rose 1.54% to Rp20,097 trillion.

Despite the rapid expansion of digital payments, cash remains widely used in Indonesia. Currency in circulation increased 15.1% year-on-year to Rp1,314 trillion in July.

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