Redenomination Of Rupiah Needs Matang Preparation To Be Implemented

JAKARTA - The Head of the Economist of The Indonesia Economic Intelligence (IEI) of the Sunarchi assessed that the rupiah redenomination policy that was being prepared should have been implemented immediately, considering that the current economic and financial system conditions are considered more prepared than a decade ago.

However, according to him, the policy needs to be accompanied by careful preparation from the side of the Government and Bank Indonesia (BI).

"Redenomination needs to be done but it must be consistent. If today we have issued a redenomination idea, we have determined it, we plan to start preparing for redenomination. Communication with parliament will be related to the law. Also prepare the administration later with the monetary authority and financial sector authorities such as the OJK," said Sun archive quoting Antara.

The readiness of infrastructure, regulation, and transitional period needs to be designed together so as not to cause confusion in society.

According to the Sun archive, technical obstacles in the implementation of redenomination are now far reduced thanks to the rise of digital transactions in the community. With the wider use of electronic money, the cost of printing new money will also be more efficient.

"So the concerns have actually decreased much compared to 10 years ago. Because 10 years ago the value of money had decreased, right. Finally, the price of goods is now no longer really real numbers," he said, explaining.

However, the Sun archive emphasizes the importance of public literacy to prevent public misunderstandings. This is because some people still often equate redenomination with synering, even though the two are different.

In sanering, he said, the value of money really decreased. Rp1,000 was Rp1 and the purchasing power was lost.

Meanwhile, in redenomination, according to him, there is only simplification of numbers without changing the real value. Rp1,000,000, for example, will be Rp1,000, but can still buy goods of the same value as before.

Furthermore, the Sun archive added, the concern that redenomination would trigger a spike in gold prices or excessive inflation is also baseless.

"It doesn't have to be like that. Because it's still a gold investment, the value will be adjusted as well," said Sunarchi.

Meanwhile, regarding the potential impact of inflation, he acknowledged that at the early stages of the transition there might be temporary pressure due to the psychological factors of the community. But gradually it will return to normal.

According to him, psychological pressure usually arises because some people choose to shop faster before the policy takes effect.

"Psycologists like this person, people end up shopping for goods now instead of later my money won't sell. Now that will then encourage inflation," he said.

Bank Indonesia and the national banking system actually have sufficient technology capacity to adjust the financial system to redenomination.

Therefore, the Sun archive suggested that the government and the monetary authority prepare legal regulations and umbrellas in parallel while building technological readiness in the banking sector.

Meanwhile, through the Minister of Finance Regulation (PMK) Number 70 of 2025, the Government is preparing a Draft Law (RUU) on Changes in Rupiah Prices or redenomination with a completion target in 2027.

The bill is one of the four priorities of the Ministry of Finance in the Strategic Plan 2025-2029.