Jim Jones claims he DOESN'T have a suspended driver's license in New York ... insisting cops made a big boo boo by arresting him earlier today.
A rep for the rapper tells TMZ ... Jim is adamant there must have been a mistake in the computer system ... simply stating, "Jim does not have a suspended license."
The rep says Jim's lawyers have already been dispatched to remedy the situation.
The worst part ... Jim claims he was originally sitting in the PASSENGER seat of the car ... when his driver stopped in front of a store to pick up a few items. Jim claims cops approached him and told him to move the car ... so he did ... and shortly after Jim got in the driver's seat, he was pulled over. During the stop, cops were informed he had a suspended license ... and took him into custody.
Still, the rep tells us ... the cops were "very cool and respectable" during the incident ... and adds, "It'll all be thrown out."