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There is the assumption that money was first created in China around 2700 BC (Before Christ) by Huang (Yellow Emperor). Ancient history has also noted that the people of Assyria, Phunisia, and Egypt have also used money as a medium of exchange. But from all development of money in any country initially started after people knew the activity of exchange.
The following will explain the stages of development of the use of money.
A.Tahap Before Barter
At this stage people are not familiar with the exchange because everyone is trying to meet his needs with his own business. What he earns is what he uses to meet his needs.
B.Tahap Barter
The next stage exposes the human being to the fact that what is produced by itself is not enough to meet its needs. The result is a barter system, which is goods exchanged for goods. But eventually there are difficulties with this system. The perceived difficulties include the following:
C. Money Stuff Goods
In this period there are things that are always used in exchange. The difficulty experienced by humans in barter is the difficulty of bringing together people who need each other at the same time. The difficulty has prompted humans to create ease in exchange, by defining certain objects as a means of exchange. The objects that are set up as a means of exchange are things that are accepted by the public, selected objects of high value (difficult to obtain or have magical and mystical value), or objects that are the primary daily necessities. For example, salt by Romans is used as a medium of exchange, as well as a means of payment of wages.
Although the medium of exchange already exists, the difficulties of exchanges remain:
D. Stage of Coins
The next stage is the coin stage. Metal is selected as money material for two reasons:
E. Stage of Banknotes
Initially the outstanding banknotes are proofs of ownership of gold and silver as a tool / intermediary to conduct transactions. Furthermore, people no longer use gold directly as a means of exchange. Instead they make the proof paper as a medium of exchange. The village of Jachymod in Czech, Eastern Europe, is considered the first region to use a currency called dollar, which is the most popular currency in the modern century. In the history of paper use as a money-making material, China was considered the first to discover it, around the first century AD, during the Tang Dynasty. Benjamin Franklin (AS) was named Father of Banknotes because he was the first to print dollars from paper, originally used to finance the United States war of independence.
This is where the Original Functions of Money can be seen as:
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There is the assumption that money was first created in China around 2700 BC (Before Christ) by Huang (Yellow Emperor). Ancient history has also noted that the people of Assyria, Phunisia, and Egypt have also used money as a medium of exchange. But from all development of money in any country initially started after people knew the activity of exchange.
The following will explain the stages of development of the use of money.
A.Tahap Before Barter
At this stage people are not familiar with the exchange because everyone is trying to meet his needs with his own business. What he earns is what he uses to meet his needs.
B.Tahap Barter
The next stage exposes the human being to the fact that what is produced by itself is not enough to meet its needs. The result is a barter system, which is goods exchanged for goods. But eventually there are difficulties with this system. The perceived difficulties include the following:
C. Money Stuff Goods
In this period there are things that are always used in exchange. The difficulty experienced by humans in barter is the difficulty of bringing together people who need each other at the same time. The difficulty has prompted humans to create ease in exchange, by defining certain objects as a means of exchange. The objects that are set up as a means of exchange are things that are accepted by the public, selected objects of high value (difficult to obtain or have magical and mystical value), or objects that are the primary daily necessities. For example, salt by Romans is used as a medium of exchange, as well as a means of payment of wages.
Although the medium of exchange already exists, the difficulties of exchanges remain:
D. Stage of Coins
The next stage is the coin stage. Metal is selected as money material for two reasons:
Materials that meet these requirements are gold and silver. The money made of gold and silver is called a coin. Gold and silver coins are also referred to as Full Bodied Money, meaning that the intrinsic value of money is equal to its nominal value (the value contained in that currency). The use of gold and silver as money in the form of coins was created by Croesus in Greece around 560-546 BC. At the same time, the medium of money that serves as a paying instrument instrument is developed, made from various other solid objects such as pottery, ceramics or bronze. In line with economic development, the development of the exchange that must be served with coins is also growing. While the amount of muliate metal is limited. The use of coins is also difficult to do for large transactions (difficult in terms of storage and transportation). So it creates paper money.
E. Stage of Banknotes
Initially the outstanding banknotes are proofs of ownership of gold and silver as a tool / intermediary to conduct transactions. Furthermore, people no longer use gold directly as a means of exchange. Instead they make the proof paper as a medium of exchange. The village of Jachymod in Czech, Eastern Europe, is considered the first region to use a currency called dollar, which is the most popular currency in the modern century. In the history of paper use as a money-making material, China was considered the first to discover it, around the first century AD, during the Tang Dynasty. Benjamin Franklin (AS) was named Father of Banknotes because he was the first to print dollars from paper, originally used to finance the United States war of independence.
This is where the Original Functions of Money can be seen as:
Stage of Electronic Money Use
Along with technological advances, especially information technology, begin to develop electronic money, where to complete economic transactions, parties who do transactions do not need to carry cash, but simply by making payments via credit card, transfer between accounts, which currently even can be done through internet, and sms and cell phones.
History of Indonesian Money
After Indonesia memplokamirkan independence, precisely at the beginning of October 1945, Indonesia still has no own currency. At that time the currency used was the currency of the Dutch East Indies, Japan and De Javashe Bank. But in the history of money in Indonesia experienced hyper inflation that causes the exchange rate dropped very drastically. The lowest is the Japanese currency because of its current circulation at most.
History of money in Indonesia recorded at that time the most farmers who suffered due to hyper inflation is due to farmers who save the most currency japan. Then the enforcement of NICA currency swept by AFNEI Commander Lieutenant Sir Sir Montagu further aggravated the current hyper inflation situation. Whereas the unfinished political settlement has become the boundary of agreement between both parties (RI and NICA) to not issue new currency.
The Indonesian government protested strongly against the NICA decision, but it was not responded by NICA. Because of this the Indonesian government further prohibits all Indonesian people from using NICA currency as a medium of exchange or buying and selling tool. This harsh step is taken so that the circulation of NICA currency does not get out of control, given Indonesia's economic recovery is still difficult.
The history of Indonesian money records the first currency issued by the government is ORI (Oeang Repiblik Indonesia) issued by the government to prevent the development of NICA currency on October 26, 1946. And since then the three currencies that were once declared no longer valid, money there are only 2 currencies at that time. It turned out that the policy was supported by the people.
History of Bank Indonesia
Starting from the name of De Javasche Bank formed by the Dutch, after the automatic Japanese occupation DJB closed for a while then born the revolution that gave birth to the dual power of power is RI and NICA. Then after going through several struggles, along with the sovereignty of RI as a nation itself then on July 1, 1953 changed DBJ into Bank Indonesia as a bank that governs the entire banking process in Indonesia. Bank Indonesia is then the role in making state money, which then until today ORI changed its name to Rupiah.
