OJK Disbursed The Impact Of Redenomination On The Capital Market

The Financial Services Authority (OJK) explained that the rupiah redenomination plan had emerged for a long time, which was the initial idea of Bank Indonesia. This policy is claimed not to affect the fundamentals of the national capital market.

Deputy Commissioner for Capital Market Investment Management and OJK Securities, Eddy Manindo Harahap, said that the redenomination aims to simplify the recording and transaction system.

He assessed that similar practices had actually often been carried out informally in everyday life.

Regarding the impact on the capital market, Eddy emphasized that the stock price will later adjust the nominal according to the redenomination rules. However, this adjustment will not affect the fundamental aspects of the market.

"Automatically all the value of the money will be adjusted, the zero behind it will be lost. But it will not affect anything else," he said at the Capital Market Journalist Workshop - Media Gathering 2025, Saturday, November 15.

Eddy explained that redenomination is a step to remove three zeros at the value of the rupiah because most transactions in Indonesia are now in the range of millions to trillions of rupiah, writing figures that are too long is considered inefficient.

"Right now, our transactions are an average of more than Rp. 1 million, Rp. 1 billion, Rp. 1 trillion. Well, writing is a hassle, the zeros are mostly. One function of Redenomination is to go back to zero so that it is simpler in our recording, in other contexts," he explained.

He emphasized that redenomination is different from the sanering or cutting of the value of money that has occurred in the past and this change is purely related to simplifying the writing of values, so it does not have a negative impact as some people fear.

"(Redenomination) This is just writing zero behind it because we have mostly zeros. As simple as that and it shouldn't have much effect on other things," he said.

He explained that one of the concerns related to the redenomination plan some time ago was related to the circulation of old money that is still being used by the public, where Bank Indonesia plans, old money remains in effect as a means of payment, but will gradually spend new money in the amount of zero that has been reduced.

He said that in the process, the old money would slowly be replaced by itself and adjustments would also apply to price writing and various other quotes.

"The old money was replaced with less money. Now that will all apply later, not only the zeros are less. The prices of the quotes are also zero, we will lose the same amount," he said.