BI Says Ready to Redenominated Rupiah

Jakarta – Governor of Bank Indonesia (BI) Perry Warjiyo opened his voice about the rupiah redenomination plan. Later, rupiah simplification is carried out by reducing the three zeros at the back, for example Rp1,000 to Rp1.

Perry said that his party has long been ready to redenominate. The Central Bank of Indonesia has also prepared the design of money until the implementation stage.

However, on the other hand, a legal basis is needed that must be agreed upon by the government and the House of Representatives (DPR) to implement the redenomination discourse.

“We have always been ready. We have been preparing for redenomination for a long time,” Perry said in the RDG, Thursday, June 22, 2023.

In addition, there are three considerations in the implementation of redenomination, namely macroeconomic conditions, monetary and financial system stability and socio-politics.

“Those are the three main considerations. The economy is already good, but it’s good, of course, to give the right moment, of course there is still a spillover from the global spillover that is still influential,” Perry explained.

Quoting the official website of the Ministry of Finance, the Ministry of Finance and Bank Indonesia (BI) are again rolling out a redenomination plan, aka the simplification of rupiah money (2020 rupiah redenomination). Minister of Finance Sri Mulyani has stipulated Minister of Finance Regulation Number 77/PMK.01/2020 concerning the Ministry of Finance’s Strategic Plan for 2020-2024, one of which explains the Draft Law on Rupiah Redenomination.

Technically, money that has been redenominated, the number of numbers will decrease but the value remains the same. An example of redenomination is Rp10,000, after redenomination, the three numbers at the back will disappear, the writing changes to Rp10 only and the value of money is still the same as ten thousand rupiah. If we usually buy milk for Rp10,000 per can, after redenomination of rupiah, the price of milk will change to Rp10 per can.

Meanwhile, the main purpose of redenomination is to simplify money fractions to make it more efficient and convenient in transactions and effective in recording financial bookkeeping. (*)

Editor: Galih Pratama