On 1st March 1993 Bank Indonesia, the issuing authority, issued its first polymer note, a Rp 50000, to commemorate 25 years of Economic Development under successive Soeharto Governments. Indonesia's First Long Term 25 Year Development Period commenced on 1st April, 1969 under his "New Order" programme, concluding 31st March, 1994. Whilst some may argue that the issue of the note was premature as the celebrations started before the end of the Development Period, the inescapable fact is the timing of the issue appears to have been influenced by the national elections of 1993.

Some reports indicate that this issue was limited to 5 million pieces, exceedingly small given the population. A paper equivalent, printed in Indonesia, was issued in much greater numbers shortly afterwards with date varieties through to 1998.

Without doubt, Indonesia experienced considerable economic growth and development during the years of the Development Period. It is therefore somewhat ironic that by the time this note (and its paper equivalent) was withdrawn from circulation on 21st August 2000, Indonesia suffered severely from the Asian economic crisis and in the accompanying political turmoil, President Soeharto was forced out of office in 1998. Many of the benefits gained under the 25 Year Development Plan were unfortunately lost although Indonesia was undoubtedly a stronger and more resilient economy than in 1969.

Whilst the notes are no longer legal tender, they can be redeemed through commercial banks until 20th August 2005 and through Bank Indonesia until 20th August 2010, at which point they will be demonetised.

The markets seemed to have some forewarning of withdrawal as Bank Indonesia issued a special notice on 23rd February, 2000 confirming its legal tender status and to relay fears of demonetisation. Apparently Saudi Arabian money changers were signalling that they would not accept the note and this was a concern to those intending to make their pilgrimage to Mecca.

It is understood that Bank Indonesia deliberately avoided the colour "red" in this note. Unlike Singapore (see Singapore section) this was not related to printing issues but because "red" has Communist overtones. Given an impending election, this perhaps is not surprising. In 1966, the army under the command of General Soeharto deposed Sukarno, his predecessor as President, and then embarked on a campaign against communist elements with which Sukarno had maintained an alliance for many years. Hence there was a strong anti- communist bias in the Soeharto regime.

Indonesia's second polymer issue occurred on 1st November, 1999, a Rp 100000. Bank Indonesia' press release stated: "The money will be made of polymer substrate (plastic) that lasts longer and is more difficult to be counterfeited than paper", quoted from (sic) Bank Indonesia Governor Syahril Sabirin today in Jakarta. To avoid money frauds, the money is completed with anti counterfeiting visible and touchable element to enable the public being familiar with originality of the money. The Governor explains that the issuance of new emission money is to ease and to accelerate cash transactions."

Issue of this note was a key measure in the Bank's Millennium Computer Bug programme. Most central bank's throughout the World embarked upon substantial stockpiling of currency in the lead up to 1st January, 2000, in anticipation of an extraordinary demand for cash in the event computer systems crashed.

Aulia Pohen, a Deputy Governor of the Bank commented that Rp 50 trillion of notes would be issued within a month - i.e. 500 million notes; a considerable logistical exercise given the essential security precautions which would be required. At the time Note Printing Australia (NPA) was engaged in printing notes to cater for Australia's Y2K requirements, issues for New Zealand, Papua New Guinea and perhaps others. In addition to those requirements, Securency was also manufacturing substrate for Northern Ireland. It is understood that at his time the resources of NPA and Securency were highly taxed. Portion of this issue was therefore printed by the Note Printing Works of the Bank of Thailand (TBPW). Attempts to identify NPA and TBPW printings by serial prefix or otherwise have been inconclusive.

Bank Indonesia issued several press releases to allay public concerns about the 100000Rp. The "05" date in the Proclamation text on the front of the note caused confusion such that on 18th November 1999, Bank Indonesia issued a special release confirming the correct printing of the note and that the text was in accordance with Indonesia's independence proclamation.

This proclamation was made on 17th August, 1945 upon surrender of the Japanese in Word War II. Indonesia was still under Japanese occupation and their dating system (at least for occupied territories) expressed this as 17th August, 2605. Former President Sukarno (6.6.1901- 21.6.1970) who features prominently on the note, was a leading force in Indonesia's independence movement and, whilst no longer alive, his memory enjoyed a resurgence in popularity following Soeharto's demise.

Apparently some impaired notes escaped quality control checks in the printing process and were released. Such impaired money was being subjected to extreme tests by the public in order to verify its validity which had the effect of destroying confidence in those particular notes; for example, the use of sharp instruments to scrape of the various coatings of lacquers and inks.

Accordingly Bank Indonesia recognised the incidence of the impaired notes, confirmed that such notes could be exchanged at any commercial bank ( as long as not counterfeits) and emphasised the security features of the notes ( see separate section below) by which genuine notes could be easily distinguished from counterfeits. In the first few months of issue, Bank Indonesia issued several positive press statements concerning the reliability of the polymer technology and the lack of detection of forgeries of polymer notes.