The Origins of the New Money Tradition on Eid, There’s a Story Behind the Dutch Prohibition

Kapanlagi.com - Every time Eid approaches, the Indonesian people flock to exchange old money for new money. This tradition has become an inseparable part of the Idul Fitri celebration, especially for children who look forward to "angpau" from parents and relatives. But where does this custom originate from?

It turns out that the tradition of giving new money during Eid has existed for hundreds of years. It started as a royal custom, evolved into a part of the community's culture, and was even prohibited by colonizers. Now, even though the world is becoming more digital, this tradition remains alive.

What is the history and development of this tradition over time? Summarized from various sources on Tuesday (1/4/2025), here is the explanation.

1. Starting from the Era of the Islamic Mataram Kingdom

History records that the tradition of giving new money during Eid has existed since the 16th century. During the Islamic Mataram Kingdom (16th to 18th centuries), the kings and nobles gave new money as gifts to children and their followers during Eid al-Fitr.

This gift was not just an ordinary giving, but a symbol of gratitude after undergoing a month-long fasting worship. The kings and nobles usually gave new money as gifts to the children of their followers during Eid al-Fitr. The new money gifts were distributed as a form of gratitude.

At that time, new money had more value compared to old money because it was considered cleaner and purer. This aligns with the meaning of Eid al-Fitr as a day of victory and purity after Ramadan.

2. Temporarily Banned by Dutch Colonizers

Although deeply rooted in the culture of society, the tradition of sharing new money faced obstacles. During the Dutch colonial period, this practice was deemed unethical and was banned.

The ban was imposed because the Dutch wanted to control the economic system and reduce the circulation of money in society. However, despite being officially prohibited, the community continued to practice this tradition secretly.

After Indonesia gained independence, this tradition flourished again and became part of the national culture. In fact, it was not only practiced by families but also began to be adopted by various institutions and companies in the form of Holiday Allowances (THR) for workers.

3. Tradition of Giving New Money in Modern Society

Over time, the tradition of giving new money has undergone changes. In the past, new money was only given to children, but now the giving of new money has also expanded to adults, household helpers, and employees in various companies.

According to historical records, the concept of THR (Tunjangan Hari Raya or Holiday Allowance) first emerged during the cabinet of Soekiman Wirjosandjojo from the Masyumi Party. The government at that time provided allowances for state apparatus to improve their welfare during Eid. This concept then spread widely and became a tradition that continues to be upheld to this day.

Currently, in addition to giving cash, many people have started using electronic money or digital wallets to share THR. However, although technology has changed, the meaning of this tradition remains the same, which is as a symbol of cleanliness, purity, and gratitude.

4. The Law of Giving New Money in Islam

• Permitted and Recommended If Intending to Give Charity

If someone gives new money with the intention of helping others, especially children, relatives, or those in need, then it is considered sunnah (recommended) because it falls under charity and strengthens the bonds of kinship.

"Exchange gifts with one another, and you will love one another."(HR.Al-Bukhari in Al-Adab Al-Mufrad, no. 594)

This hadith indicates that giving gifts, including new money during Eid, is an act that can strengthen relationships among Muslims.

• Not Allowed If There Are Elements of Riya or Showing Off

If giving new money is done to show off wealth, seek praise, or burden oneself to appear generous, then it is feared to fall into riya (showing off), which is prohibited in Islam.

Allah says:

"Those who spend their wealth to show off to people and do not believe in Allah and the Last Day. And whoever takes Satan as a friend, then he is a very bad friend."(QS.An-Nisa: 38)

Therefore, it is important to ensure that giving new money is done with sincere intention and not merely for seeking social recognition.

• Forbidden If It Contains Elements of Riba or Invalid Transactions

If someone exchanges old money for new money but incurs additional costs that do not comply with Islamic law, this could fall into the category of riba, which is prohibited in Islam.

"Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt must be exchanged in equal measure and done in cash. Whoever adds or asks for more has committed riba."(HR.Muslim, no. 1584)

From this hadith, scholars conclude that exchanging old money for new money must be in equal amounts and without unreasonable additional costs, because if there are additional costs without clear justification, then it constitutes riba.

(kpl/frr)