IDX Boss Reveals Stockwork If Rupiah Redenomination Is Implemented

President Director of the Indonesia Stock Exchange (IDX) Iman Rachman (Sepiang kiri kedua) (Aris Nurjani/VOI)

JAKARTA - The Indonesia Stock Exchange (IDX) has opened its voice regarding the implementation of the rupiah redenomination plan policy, namely the simplification of the currency value from IDR 1,000 to IDR 1.

President Director of the Indonesia Stock Exchange (IDX) Iman Rachman revealed that there are a number of technical homework (PR) that needs to be completed if the government really implements rupiah redenomination.

"Now the price is Rp100 for one lot, because that's what PR is possible for us, the lot is Rp100, we are in the context of lowering the lot," he said at the Media Gathering Capital Market Journalist Workshop, quoted on Sunday, November 16.

Iman added that changes to the nominal value of the rupiah due to redenomination will automatically demand adjustment to the trading system.

According to him, if the value of the rupiah is simplified, the prices of several stocks can be at a very small level, so the IDX must adjust the price fraction so that transactions continue to run smoothly.

"So if the share price is only Rp200, you can't go into a coma or a penny like that," he said.

For information, the government is preparing steps towards redenomination or simplification of the rupiah digit listed in the Strategic Plan (Renstra) of the Ministry of Finance (Kemenkeu) 2025 2029 which is regulated through the Minister of Finance Regulation (PMK) Number 70 of 2025.

In a document signed by the Minister of Finance Purbaya Yudhi Sadive, the Ministry of Finance places the preparation of the Draft Law on Changes in Rupiah Prices (Redenomination) as one of the national priority programs in the field of fiscal policy.

In addition, the bill is categorized as a slide bill and is targeted for completion by 2027.

Previously, Deputy Commissioner for Capital Market Investment Management and Securities Management, Ojk Eddy Manindo Harahap, said That Redenomination Aims to Simplify Recording and Transaction Systems.

He Considers That Similar Practices Have Actually Been Performed Informally In Everyday Life.

Regarding The Impact On The Capital Market, Eddy Emphasized That The Stock Price Will Adjust The Nominal According To The Redenomination Rules. However, the Adjustment Will Not Affect The Market Fundamental Aspects.

Eddy Explains That Redenomination Is A Step To Remove Three Zeros At Rupiah Values Because Most Transactions In Indonesia Are Now In The range Of Millions To Trillions Of Rupiah, Writing Figures That Are Too Long Are Considered Inefficient.

"Now, we mean all transactions above Rp. 1 million, Rp. 1 billion, Rp. 1 trillion. Well, the release of the Most Zero Repots. One Redenomination Function Is Zero Behind So It's More Simple In We Record, In Other Figures As It Is. ," he explained.

He EMPHASIZED That Redenomination Is Different From Sanering Or Cutting The Value Of Money That Has Occurred In The Past And This Change Is Purely Related To Simplification Of Value Writing, So It Doesn't Cause Negative Impacts As Some People Worry.

"(Redenomination) Thishwa similar practices have actually often been carried out informally in everyday life.

Regarding the impact on the capital market, Eddy emphasized that the stock price would later adjust the nominal according to the redenomination rules. but these adjustments 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.

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 over Rp. 1 million, Rp. 1 billion, Rp. 1 trillion. Well, writing it is troublesome, the number is mostly zero. One redenomination function is zero behind so it is simpler in our recording, in other contexts," he explained.

He emphasized that redenomination is different from sanering or cutting 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) it's just writing zero behind it, it's lost because the zeros are mostly us. 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 to continue to apply 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.