Key Points
- The government targets the completion of the Rupiah Redenomination Bill by 2027, as stated in PMK No.70/2025 concerning the Ministry of Finance’s Strategic Plan for 2025–2029.
- The main objectives of redenomination are to improve economic efficiency, maintain the stability and purchasing power of the rupiah, and strengthen the credibility of the national currency.
- The redenomination plan was initiated in 2010 by BI, but has not been realized until now and has been reintroduced in the Ministry of Finance’s work plan.
Jakarta – The government plans to propose a draft law on rupiah redenomination, which is a change in the unit of price or value of the rupiah without changing its purchasing power.
The discussion of the Redenomination Bill is included in the four regulatory frameworks listed in Minister of Finance Regulation (PMK) Number 70 of 2025 concerning the Ministry of Finance’s Strategic Plan for 2025-2029.
The Ministry of Finance targets the completion of the Rupiah Redenomination Bill in 2027.
“The Bill on the Change in the Value of the Rupiah (Redenomination) is a draft bill that is planned to be completed in 2027,” reads PMK No.70/2025, quoted on Friday, November 7, 2025.
This bill aims to achieve economic efficiency through increased national competitiveness, maintaining economic growth, and maintaining the stability of the rupiah as a form of protection for people’s purchasing power.
In addition, this policy is also expected to increase the credibility of the rupiah at the national and international levels.
An Old Plan Resurrected
The issue of rupiah redenomination has actually been circulating for a long time. This plan was first initiated by Bank Indonesia (BI) in 2010.
During the leadership of BI Governor Agus D.W. Martowardojo, the draft policy was prepared and submitted to the government, but it has not been realized during the era of BI Governor Perry Warjiyo.
Previously, a similar plan was also included in Minister of Finance Regulation No. 77/PMK.01/2020 on the Ministry of Finance’s Strategic Plan for 2020–2024, which also discussed the Rupiah Redenomination Bill. (*)
Editor: Yulian Saputra
