Redenomination Of Rupiah Entering Prolegnas 2025'2029, BI Affirms Not Changing Purchasing Values And Power

Rupiah (photo: antara)

JAKARTA - Bank Indonesia (BI) confirms that the Rupiah redenomination plan will not change the value or purchasing power of the public towards goods and services.

Meanwhile, redenomination is a step to simplify the number of digits in the Rupiah fraction, which aims to increase transaction efficiency, strengthen the credibility of the Rupiah, and support the modernization of the national payment system.

Head of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, explained that the redenomination process would be carried out in a planned manner and involved close coordination with all stakeholders.

He added that currently, the Draft Law (RUU) of Redenomination has been included in the 2025-2029 Medium Term National Legislation Program (Prolegnas), as a Government Initiative Bill proposed by Bank Indonesia.

"Furthermore, Bank Indonesia together with the Government and the House of Representatives will continue to discuss the redenomination process," he said in his statement, Monday, November 10.

He added that the implementation of redenomination will consider the right time by taking into account political, economic and social stability, as well as technical readiness such as aspects of law, logistics, and information technology.

"Bank Indonesia will remain focused on maintaining stability of the value of the Rupiah and supporting economic growth during the redenomination process," he said.

Previously, the Ministry of Finance planned to draft four new Draft Laws (RUU) in the near future, one of which was a bill on Changes in Rupiah Prices or Redenomination.

This plan is stated in the Minister of Finance Regulation (PMK) Number 70 of 2025 concerning the Strategic Plan (Renstra) of the Ministry of Finance 2025'2029.

The PMK was issued on October 10, 2025 and took effect after being promulgated on November 3, 2025.

The urgency of formation, economic efficiency can be achieved through increasing national competitiveness, citing the regulation, Friday, November 7.

In addition, the formation of the Redenomination Bill is also considered important to maintain the continuity of national economic growth, maintain the stability of the rupiah exchange rate as a form of protection against people's purchasing power, and strengthen the credibility of the rupiah currency.

The bill on Changes in Rupiah Prices is included in the category of advanced bills targeted for completion in 2027, with the Directorate General of Treasury (DJPb) of the Ministry of Finance as the main person in charge.

To note, the rupiah simplification plan has actually been listed in PMK No.77 / PMK.01 / 2020 concerning the Strategic Plan of the Ministry of Finance 2020 2024, where it is explained the concept of reducing the three zeros behind the nominal, for example Rp1,000 to Rp1.