BI Reveals Redenomination Stage Of Rupiah

JAKARTA - The Governor of Bank Indonesia, Perry Warjiyo, emphasized that the stage towards rupiah redenomination requires a long process and cannot be carried out in the near future.

Perry explained that BI is currently still prioritizing economic stability and growth, so redenomination has not become the main focus.

"Yesterday I conveyed to Commission XI that we talked about redenomination, we focus on stability and growth. I have conveyed earlier, the redenomination stage is long," he said during a working meeting of the Indonesian DPD Committee IV with the Governors of BI and OJK, quoted Tuesday, November 18.

According to him, the redenomination process has several important stages, namely the first stage is to establish a legal basis through a special law regarding redenomination because without these regulations, the process cannot be started.

Perry added that the second stage is to ensure the rules regarding price transparency.

"Now we have done it before. If we go to the area, there is one glass of coffee, three empty 25. The empty is small. 25k. But this is not all. The price transparency is very important. Like that," he said.

He added that the third stage is to prepare a new design and the money printing process that will be used after redenomination.

Perry conveyed the fourth stage, BI together with the government must carry out a transition period where old money and new money apply in parallel and assert that redenomination is not a cut in the value of money.

Perry estimates that the entire redenomination process will take about five to six years from the time the law is issued until the final stages of its implementation.

He reiterated that BI's main focus at this time is maintaining stability and encouraging economic growth.