Department of Currency Management - Bank Indonesia · Indonesian Legal Instruments in Counterfeit...

Department of Currency Management

COUNTERFEIT DETERRENCE STRATEGIES

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OUTLINE

General Definition

Statistics of Detected Counterfeits in Indonesia

Counterfeit Deterrence Strategies

Bank Indonesia Counterfeit Analysis Center (BI – CAC)

Challenges in Counterfeit Deterrence


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1. Code of Criminal Procedures Act No. 8/1981

2. Bank Indonesia Act No. 23/1999

3. Currency Act No. 7/2011

4. Presidential Regulation No. 123 Year 2012 concerning

the Coordinating Board for Counterfeit Rupiah

Eradication

General Definition

Indonesian Legal Instruments in Counterfeit Deterrence


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General Definition

Counterfeit Rupiah

“…Counterfeit Rupiah shall be an object whose material, size,color, images, and/ or its design resembles Rupiah of which ismade, shaped, printed, duplicated, distributed, and used asillegal payment instrument…” (Currency Act No. 7/2011)

Ratio of Counterfeit Rupiah

The ratio of counterfeits is a number of counterfeits found for every 1 million sheets ofcirculated Rupiah

This ratio is one of the methods used to measure the number of counterfeits circulating withina certain period

Higher ratio implicates a higher number of circulated counterfeits


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Statistics of Detected Counterfeits in Indonesia


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Ratio of Counterfeit

Denomination 2014 2015 2016 as of June 2017Number of circulated Rupiah (UYD) (Million sheets)

100,000 2,895 3,683 3,463 3,788

50,000 2,823 3,337 2,987 3,093

20,000 597 649 719 779

10,000 1,218 1,321 1,416 1,551

5,000 1,957 2,049 2,281 2,336

2,000 2,832 3,156 3,476 3,629

1,000 2,277 2,147 2,070 2,019

Total 14,598 16,344 16,413 17,195

Number of counterfeits (sheets)100,000 71,744 225,829 17,711 29,866

50,000 43,159 80,165 85,404 28,146

20,000 6,933 9,105 7,858 1,894

10,000 2,070 2,130 2,079 449

5,000 2,032 2,116 909 494

2,000 5 335 10 6

1,000 474 1 1 0

Total 126,417 319,681 213,972 63,449

Ratio 9 21 13 4


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Bank75%

Police25%

Counterfeits Reported from Bank and Police

Bank Police

Statistics of Detected Counterfeits in IndonesiaIn 2016, the number of detected counterfeits reached 213,972 sheets. Most of the counterfeits are from the higher denomination, Rp 100,000 and Rp50,000. Commercial banks reported 75% of the total number of detected counterfeits, while the other 25% are reported by the police. CounterfeitedCurrency Ratio in 2016 is 13 sheets for every 1 million banknotes in circulation, lower than the previous year with ratio of 21 sheets.

020000400006000080000

100000120000140000160000180000200000220000240000260000280000300000

2013 2014 2015 2016

Sh

eets

Year

Detected Counterfeits based on Denominations

<10,000 20,000 50,000 100,000

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Rat

io

Year

Counterfeited Currency Ratio for Every 1 Million Banknotes in Circulation

Counterfeited Currency Ratio for Every 1 Million Banknotes in Circulation


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10 Most Significant Areas of Counterfeit Money Findings as of June 2017

Number Province Bills

> 8.900 sheets

DKI Jakarta & Banten 16,039

East Java 11,130

West Java 11,086

Central Java 8,901

Number Province Bills

1.200 > X < 8,900 sheets

Bali 2,219

North Sumatera 2,175

NTB 2,008

Lampung 1,613

D. I. Yogyakarta 1,297

West Kalimantan 1,245

> 8.900 sheets

1,245 > X < 8,900 sheets

< 1,245 sheets

• Counterfeits are mostly found in provinces with high economic activities, such as Jakarta, East Java, West Java and Central Java


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Counterfeits Per Denomination

2014 2015

71,74443.159

6.9332.070

2.0325 474

In 2014

100.000 50.000 20.000 10.000

5.000 2.000 1.000

Denomination Bills

100,000 71,744

50,000 43,159

20,000 6,933

10,000 2,070

5,000 2,032

2,000 5

1,000 474

Total 126,417

Denomination Bills

100,000 225,829

50,000 80,165

20,000 9,105

10,000 2,130

5,000 2,116

2,000 335

1,000 1

Total 319,681

225,829

80.165

9.1052.130

2.116 3351

In 2015

100.000 50.000 20.000 10.000

5.000 2.000 1.000

In Indonesia, most of the counterfeits are from higher denomination (Rp.100 thousands & Rp.50 thousands). Criminal sanctions do not differentiate between the forgery of large & small denomination, thus perpetrators tend to forge large denomination due to

similar risk.

2016

Denomination Bills

100,000 117,711

50,000 85,404

20,000 7,858

10,000 2,079

5,000 909

2,000 10

1,000 1

Total 213,972

In 2016


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Counterfeit Deterrence Strategy Map

Restricting the Movement of Counterfeit Circulation, Reducing the Counterfeit Perpetrators and Reducing Counterfeit Circulated in the Community

Process

Enablers

Pillar #2Increasing Public

Knowledge & Education of Rupiah’s Security

Features

Pillar #1Providing Rupiah in Good

Quality, Reliable, and Secure.

Pillar #3Optimizing Legal Sanctions

against the Counterfeit Perpetrators to Create a

Deterrent Effect

Standardization of Rupiah

Utilizing the Results of Counterfeit Analysis from BI-

CAC Laboratory

Building Strategy & Preparing Education

Materials

Sosialization and public education

Developing Cooperation with Law Enforcement

Improving the Quality of Security Features

Competent HRReliable Information

System Fund Availability

Imposing Maximum Sanctions against the Counterfeit

Perpetrators

Expert Witness

Establishment of Counterfeit Deterrence Unit & BI-CAC Laboratory at several Domestic BI

Representative Offices

Pillars

Objective

Availability of external & internal provisions on Counterfeit Deterrence


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Utilizing the Results of Counterfeit Analysis from

BI-CAC Laboratory


• In order to achieve the objective of counterfeit deterrence, one of the mainrequirements is that BI must provide trusted, reliable and secure Rupiah, thusit is difficult to be forged.

• Therefore, the standardization of Rupiah is required, among other thingsincluding the materials, numbers & types of security features, by consideringthe cost of money production for each nominal.


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• Through BI-CAC, BI could perform analysis & research about the level ofcounterfeit. The result will be used as a reference for choosing & decidingsecurity features to be used on Rupiah.

• BI-CAC may also provide information related to the area of detectedcounterfeit, counterfeiting technique and relationship among counterfeitcases for law enfocement.




Utilizing the Results of Counterfeit Analysis from

BI-CAC Laboratory



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• By increasing the number of public who understand Rupiah’s security features, themovement of counterfeit circulation may be restricted.

• The strategy for communicating Rupiah’s security features, both through publication andeducation program, is considered successful. It is evident from public’s recollection of 3D(Dilihat, Diraba & Diterawang) tag-line as a method to verify the authenticity of Rupiah,although the advertisement of 3D is rarely broadcasted in the mass media.

• In addition, about 65% of cases of the money counterfeiting start from informations fromthe public who receive counterfeit during transactions.

Pillar #2Increasing Public

Knowledge & Education of Rupiah’s Security

Features

Building Strategy & Preparing Education

Materials

Sosialization and public education


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• BOTASUPAL is formed based on Currency Act No. 7/2011 & PresidentialRegulation No. 123 year 2012 concerning the Coordinating Board forCounterfeit Rupiah Eradication.

• BOTASUPAL has a function to serve as a Coordinator for Counterfeit RupiahEradication. The function of a Coordinator for Counterfeit Rupiah Eradication,is to integrate the activities & operations of counterfeit Rupiah eradicationconducted by relevant institutions/agencies in accordance with the functions,duties & authorities of each institution/agency based on the provisions oflaws and regulations.

• Based on regulations of the Head of BIN as the Chairperson of BOTASUPAL,the role of BOTASUPAL currently develops into the provision of permits &supervision of security printing, import of color photocopier, color printer &multifunction machine as well as card-based payment instrument.



Deterrent Effect



Perpetrators

Expert Witness


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• Criminal sanctions of imprisonment & fine in Currency Act No. 7/2011 do notapply minimum sanctions.

• As a result, some counterfeit perpetrators are recidivists because they aresubject to light punishment in the previous case.

• Incidentally, BI has made coordination with law enforcement in cases of themoney counterfeit which become public attention. As a result, in casesmonitored by BI, counterfeit perpetrators are prosecuted & subject to thecriminal sanction of imprisonment for more than 5 years, some even reach 12& 14 years.



Deterrent Effect



Perpetrators

Expert Witness


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• In criminal case of money counterfeiting, BI plays an important role todetermine whether the confiscated evidence constitutes counterfeit or not.

• The role is played by BI Officers in the cash affairs (Cashier) sector, throughthe provision of Expert Testimony as main evidence, at the level ofinvestigation by the National Police and court.

• At the moment, BI has 261 Rupiah Experts who have graduated education &competency test as Rupiah Experts conducted by BI. The Rupiah Experts arespread throughout BI Representative Offices and are ready to play a role inproviding Expert Testimony in cases of money counterfeit in their work area.



Deterrent Effect



Perpetrators

Expert Witness


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Bank Indonesia

Counterfeit Analysis Center

(BI – CAC)


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BI-CAC is :

A facility of BI designed to perform recording, classifying, and analyzing ofcounterfeit money reported, found or seized from the public, Banks, and NationalPolice.

BI-CAC consists of :

• Information System which records the order of counterfeit money, includingdenomination, source of counterfeit, amount, printing techniqueclassification, forged security features and serial number.

• Laboratory containing a set of devices such as : document forensicexamination device, binocular microscope & multipurpose portabledevice.

All those devices are used to investigate & check the authenticity of Rupiahbanknotes which is suspected as counterfeit. The results of investigationdetermine the genuinity of Rupiah.


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Printing Techniques C = Copy (Ink Jet)

L = Laser/Toner

P = Printed (Offset)

M = Manipulation

A = Art (Drawing)

X = Others

Security Features

• Money Materials– Type of Materials– Watermark– Security Thread– Fibers

• Printing Techniques– Serial Number– Invisible Ink – Optical Variable Ink (OVI)– Intaglio– Microtext

Circular Letter No. 12/8/INTERN datedMarch 17, 2010 concerning ImplementationGuidelines on the Provision of Classification

of banknotes which is suspected ascounterfeit & Report on CounterfeitFindings

Classification of Counterfeit by Printing

Technique


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Identification of serial number on counterfeit money

1. The serial number of Rupiah has 9 digits, consisting of “3 letters + 6 numbers”.

2. Counterfeit from the same source will have similar serial number characteristics (atthe minimum of 6 digits) in order to reduce production cost.

3. Therefore, counterfeit money with similar characteristics (at the minimum of 6 digits)may be concluded originating from the same perpetrator.


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Challenges in

Counterfeit

Deterrence


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#1. The mildess of money counterfeiting case sentences

The Currency Act No.

7/2011 imposed

maximum sentence for

counterfeiting, not the

minimum sentence. Punishment against

forgers

Not uniform

Punishment tends to be

minimum.


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Performed Effort:

Coordination become important to synchronize understanding of Currency ActNo. 7/2011, related to :

1. Counterfeiting activity (as a serious and organized crime)

2. Role of each institution

3. Punishment against counterfeit perpetrators

4. Negative impacts of money counterfeiting, e.g:

Economically harms the people received the counterfeit, and in a

large scale will injure the national economy, such as triggeringinflation

Damaging national image because Rupiah is a national symbol

Decreasing the trust toward Rupiah which eventually willdecrease the value of Rupiah

COORDINATIONBank Indonesia – National Police – Public Prosecutor –Judge

DETERRENTEFFECT


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#2. Public Understanding of Rupiah Authenticity Characteristics

Communication and Education Program

SECURITY FEATURES

OF RUPIAH


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Communication Program

Publication Program Education Program

INDIRECT material delivery from BI to the public.

Material substances : Authenticity Characterictics, 3D Program & How to Treat

Money.

DIRECT material delivery from BI to the public through dissemination activities.

Material substances : Authenticity Characteristics, 3D Program, Currency

Law, How to Treat Money, etc.

Designing and broadcasting PSA in electronic & printed media

Production of Various Printed Goods (leaflet, booklet & poster)

Production of Various Souvenirs (umbrella, notebook, etc.)

Production of Information Materials for Internet Media (BI website, FB, youtube,

twitter, etc.)

Dissemination to genera public, including traders, students, university students, etc.

TOT for Banks and Law Enforcement Entity

Dissemination through learning materials in high school curriculum (since 2014)

Dissemination for the public through Traditional Arts & Expo/Exhibition

Special program for children (4 – 10 years old) such

as 3D Quiz, Comic, Coloring Book & various forms of kid games

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#3. Expansion of BI CAC Laboratory

o BI CAC Laboratory is currently located only at the Head Office of BI

o On the other hand, counterfeit Rupiah circulation in several regions is relatively

significant

Establishment of BI CAC Laboratory in 2017 in 3

locations


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Department of Currency ManagementCounterfeit Deterrence Division

Head Office of Bank IndonesiaBuilding C 7th Floor

Jln. MH. Thamrin No. 2

Jakarta 10350 – Indonesia

THANK YOU

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NoUnsur

PengamanUangAsli

UPALTeknik

PemalsuanKualitas Pemalsuan

1 Watermark/ Electrotype

Cetak sablon & offset

Relatif kurang baik & dapat dikenaliperbedaanya dgn yg asli.

2 BenangPengaman

Dicetak dgntinta tertentu& ditempeldgn kertas ygterdapat efekmengkilap(seperti kertaskado).

• Upaya pemalsuan dilakukanmenggunakan printer.

• Tiruan benang pengaman padaUPAL Rp.50 ribu memilikikesamaan warna dgn uang asli,namun tidak memiliki efekperubahan warna.

• Tiruan benang pengaman padaUPAL Rp.100 ribu masih kurangbaik.

3 Magnetic Properties

-- -- -- Belum ditemukan.

Meskipun ada upaya meniru benang pengaman pada UPAL pecahan Rp.50 ribu namunpemalsuan unsur pengaman pada bahan uang relatif belum baik.

III. Bank Indonesia Counterfeit Analysis Center (BI-CAC)

Hasil Penelitian & Analisa BI-CAC terhadap Bahan UPAL


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NoUnsur

PengamanUangAsli

UPALTeknik


1 Intaglio Cetakan printer (inkjet/laserjet) & ditaburi tepung/ diamplas

UPAL belum dapat meniru cetakan intaglio. Namun terdapat sejumlah kecil UPAL ditaburi tepung agar terasa kasar ketika diraba.

2 Rectoverso Cetakan printer(inkjet/ laserjet)

Secara umum kualitas pemalsuanrectoverso masih sangat rendahdan tidak presisi.

3 Rainbow Feature

Cetakan printer(inkjet/ laserjet)

Belum dapat menghasilkan efekwarna pelangi. Namun demikian,fitur ini kurang dikenal oleh publik.

4 Latent Image Cetakan printer (inkjet/laserjet) & taburan tepung/ diaplas

UPAL belum dapat meniru latent image. Namun demikian, fitur inijuga kurang dikenal oleh publikmengingat berdasarkan survey fiturini agak sulit dikenali olehmasyarakat.


Hasil Penelitian & Analisa BI-CAC terhadap Teknik Cetak UPAL


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NoUnsur

PengamanUangAsli

UPALTeknik


5 Blind Code Cetakan printer(inkjet/ laserjet)

Tidak mempunyai efek timbul(emboss )

6 OVI Cetakan tintabiasa denganteknik sablon

Relatif kurang baik karena belumdapat menghasilkan perubahanwarna (color shifting) seperti padauang asli. Namun, dalam jumlahterbatas telah terdapat temuanupal pecahan Rp50 ribu yangkualitas pemalsuannya sudahcukup baik.

7 UV features Teknik cetaksablon & InkjetPrinting

Pemalsuan UV feature cukup baikkarena memendar apabila dilihatdengan lampu UV, meskipun tidakpresisi dengan gambar dasarseperti yang terdapa pada uangasli.Kalangan professional (al. teller &kasir), hanya melihat ada / tidaknyapemendaran




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NoUnsur

PengamanUangAsli

UPALTeknik


8 Microtext Cetakan printer(inkjet / laserjet)

Kualitas pemalsuan mikrotekskurang baik (resolusi cetakan uangpalsu rendah)

9 Infra red -- -- -- Meskipun belum ditemuaknpemalsuan IR pada UPAL namunkualitas IR perlu ditingkatkan

10 Kertas Uang Uang kertas aslidibelah denganjarum & airkemudian dibuat 2lembar UPAL:• UPAL-1 bagian

depan asli danbagian belakangpalsu.

• UPAL-2 bagiandepan palsu danbagian belakangasli.

Teknik pemalsuan ini cukupsulit untuk diidentifikasikarena cash handlersumumnya hanya memeriksaunsur pengaman uang aslipada satu sisi saja.



UPAL Manipulasi

T

E

R

B

A

T

A

S


Rekomendasi BI-CAC terhadap Desain Uang Baru

No Unsur Pengaman Rekomendasi

1 Latent Image Latent Image yang saat ini terdapat pada uang asli cukup sulit ditemukan olehmasyarakat.Oleh karena itu disarankan agar teknik cetak pada Latent Image dapatdiperbaiki sehingga unsur pengaman ini mudah dikenali oleh masyarakat.

2 OVI OVI yang saat ini terdapat pada uang asli masih sulit dikenali karena perubahanwarnanya tidak terlalu kontras.Oleh karena itu disarankan agar tinta pada OVI dapat diganti dengan tinta yangmemiliki perubahan warna yang kontras (misal seperti USD yang OVI-nyaberubah warna dari hitam ke hijau).

3 UV Features UV Features yang saat ini terdapat pada uang asli hanya memiliki 1 warna,sehingga mudah dipalsukan oleh karena tinta visible/ invisible ink telah dijualsecara bebas.Oleh karena itu disarankan agar dalam satu gambar, UV Features memiliki lebihdari 1 (satu) warna.

4 Kertas Uang Mengingat saat ini kertas uang relatif mudah dibelah dengan menggunakanjarum & air maka ke depan diharapkan adanya peningkatan kualitas bahankertas uang untuk mempersulit pemalsuan uang dengan cara manipulasi.

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