ANALYSIS OF VARIABLES AFFECTING THE DECISION IN THE USE OF RUPIAH COINS: A CASE STUDY IN THE RIAU ISLANDS PROVINCE (RECOMMENDATIONS FOR THE IMPLEMENTATION OF LAW (UU) NUMBER 7 OF 2011 CONCERNING CURRENCY)

Abstract

The slowdown or minimal circulation of coin currency in the Riau Islands Province is a recurring issue for the coin supply at the Indonesian Bank Representative Office in the province. These coins must always be available due to high demand, yet their availability is dwindling as the return flow to the Indonesian Bank Representative Office in Batam is very limited. Why is the return flow of coins so meager compared to the circulation of coins that have been issued? There are many factors that slow down the circulation of coins among the community and numerous considerations taken by the community in using coin currency.

The purpose of this research is to understand why there is a tendency for such a small amount of coin currency to return to the Indonesian Bank Representative Office in the Riau Islands Province by analyzing the independent and dependent variables of coin currency. This includes examining the impact of the coin's quality level, nominal value, and public behavior towards coins on the community's decision to use coin currency. This study is descriptive, depicting the subjects related to general decision-making. The population of the study includes everyone in the Riau Islands Province, especially in Batam, Tanjung Balai Karimun, and Tanjung Pinang, as these locations have the largest populations in the province. The sample for this study consisted of 150 people, of which 70 were from Batam, 50 from Tanjung Balai Karimun, and 30 from Tanjung Pinang, selected randomly. Data collection was conducted using questionnaires.

The analysis results show that all independent variables (the quality level of coin currency, the nominal value of the coins, and public behavior towards coins) have a positive influence on the dependent variable, which is the community's decision to use coin currency. This means that, according to the community, these three independent variables are considered important when using coin currency.