JAKARTA: Indonesia’s finance ministry said it is planning a new Bill to redenominate the rupiah in an effort to improve economic efficiency, maintain stability and improve the currency’s credibility.
“The Bill on redenomination is a carryover draft bill that is planned to be finalised in 2027,” a ministry regulation reviewed on Saturday showed.
The plan to slash zeroes from the currency has been discussed in past years.
The last time the government submitted a draft to Parliament was in 2013. It proposed slashing three zeroes of the rupiah banknote, but the draft was shelved.
It was not immediately clear how many digits would be removed under the latest redenomination plan, though state news agency Antara reported on Saturday (Nov 8) that the Bill proposes removing three zeroes from rupiah denominations.
Local news outlet Jakarta Globe reported that the latest measure appeared in Finance Ministry Regulation (PMK) No 70/2025 on the ministry’s 2025–2029 strategic plan, issued on Oct10 and enacted on Nov 3.
Currently, rupiah banknotes range from 1,000 to 100,000 in denominations. A 100,000 rupiah note is equivalent to US$6.
Redenomination would remove the number of digits on currency without altering purchasing power or the exchange rate.
In 2023, Bank Indonesia said it was ready to implement redenomination, but had not yet found the right timing.
Jakarta Globe reported that policymakers cited three main considerations then: Domestic and global macroeconomic conditions, monetary and financial system stability, and social-political dynamics.
On the last point, the central bank reportedly emphasised that redenomination is not devaluation, but the public could still be cautious given past experiences with inflation and currency crises.
https://www.channelnewsasia.com/asia/indonesia-plans-bill-redenominate-rupiah-potentially-slashing-zeros-currency-5454871
