The Indonesian government has revived a long-delayed plan to redenominate the rupiah by removing three zeros from the currency (e.g., Rp 50,000 → Rp 50). The plan aims to simplify financial transactions and make the currency more efficient to use. The target to have the redenomination law ready by 2027. The process will be done without reducing purchasing power, meaning prices and wages will be adjusted proportionally. BI spokesperson Ramdan Denny Prakoso stated the measure will depend on political, economic, and social stability, as well as technological readiness. Indonesia has discussed redenomination since 2010, with serious consideration in 2013, but the plan never materialized. It reappeared in the National Legislation Program (Prolegnas) for 2025–2029. Economists warn the move could cause confusion and logistical issues if not handled carefully. Some believe it is mostly symbolic, not addressing deeper economic problems like inflation or low productivity. Critics argue that without strong economic fundamentals, redenomination could create unnecessary complications. The Finance Ministry and BI claim the change will modernize the currency system and reflect Indonesia’s growing economy, provided that stability and readiness are ensured.Source: https://www.thejakartapost.com/business/2025/11/10/govt-revives-plan-to-chop-some-zeros-off-rupiah-bills.html#:~:text=The%20government%20has%20put%20back,more%20problems%20than%20it%20solves. (ICE GIACARTA)

Fonte notizia: The Jakarta Post Paper - November 11, 2025