Jakarta, hitclubapk3 Indonesia
—
Minister of Finance
Ancient
Yudhi Sadewa revived the plan
Rupiah redenomination
which took place in the era of the 6th President of the Republic of Indonesia Susilo Bambang Yudhoyono (SBY) and the 7th President of the Republic of Indonesia
Joko Widodo
.
Purbaya plans to prepare a policy to change IDR 1,000 to IDR 1 through a new law in 2027. He revealed this plan through Minister of Finance Regulation (PMK) Number 70 of 2025 concerning the Strategic Plan of the Ministry of Finance for 2025-2029.
“The Bill on Rupiah Price Changes (Redenomination) is a draft bill which is planned to be completed in 2027,” reads PMK 70/2025 which was signed by Purbaya.
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Purbaya entrusted the task to the Directorate General of Treasury (DJPb) of the Ministry of Finance as the person responsible for redenomination.
He prepared the redenomination of the rupiah for the sake of economic efficiency.
Purbaya also uses rupiah redenomination as a strategy to maintain the continuity of national economic development, a stable value of the rupiah as a form of maintaining people’s purchasing power, and increasing the credibility of the rupiah.
So, what is rupiah redenominization?
The official website of Bank Indonesia (BI) explains rupiah redenomination as a simplification of writing the value of goods and services which is also followed by a simplification of writing payment instruments or money.
Simplification is only done by eliminating a number of zeros in the money.Redenomination does not change the value of the money.
For example, IDR 100 thousand will be replaced with IDR 100.However, the value of the two pieces of money is equal.
If IDR 100 thousand can be used to buy one shirt, then IDR 100 can also be used to buy one shirt.
Redenomination vs sanering
Rupiah redenomination is often misunderstood as sanering.Different from redenomination which is in the form of simplifying the numbers in money, sanering is in the form of cutting the value of money.
Redenomination does not affect people’s purchasing power because only the numbers on the money are simplified.Meanwhile, sanering affects people’s purchasing power because it changes the value of money.
Redenomination is carried out when inflation is in a low range and the movement is stable, economic growth is maintained, price stability is maintained, monetary conditions and the financial system are stable, there is community need and readiness, and social and political conditions are stable.
Meanwhile, sanering is carried out when economic conditions are unhealthy.It is hoped that cutting the value of money through sanering will restore the economy.
Old discourse
Purbaya’s plan to redenominate the rupiah is not new.This discourse has been circulating since 2013.
This plan emerged again in the era of BI Governor Agus D.W.Martowardojo.In December 2016, Agus asked for the blessing of the 7th President of the Republic of Indonesia Jokowi to support the process of completing the Rupiah Redenomination Law.
BI Governor Perry Warjiyo has also planned the redenomination of the rupiah in 2023. In fact, he said that BI has prepared a new design and shape for the rupiah.
“The issue of the design, then also the issue of the stages, we have also prepared this from a long time ago operationally and then what the form and steps will be,” said Perry at that time.
However, these plans have not yet been realized.Former Minister of Finance Sri Mulyani once said that the redenominsion of the rupiah would take years.
“There are quite a lot of currencies in the world with zeros, such as Turkey, because it has experienced very high inflation. So, redenomination is more convincing if the economic foundations are well maintained. Even if it is done, it will take seven years for this transition to be successful,” said Sri Mulyani when she was still Minister of Finance on December 19 2016.
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