November 10, 2025 | 11:19 am
TEMPO.CO, Jakarta - Bank Indonesia (BI) has responded to discussions surrounding the Redenomination Bill which aims to simplify the country’s currency system by removing several zeros from the rupiah without altering its actual value.
Head of BI’s Communication Department, Ramdan Denny Prakoso, said the redenomination plan is being carefully prepared and will involve close coordination among government agencies and other stakeholders.
“The Redenomination Bill has been included in the 2025–2029 National Legislative Program as a government-initiated proposal following a submission from Bank Indonesia,” Denny said in a written statement on Monday, November 10, 2025.
He added that BI, together with the government and the House of Representatives (DPR), will continue to discuss the technical and policy aspects of the redenomination process.
“The redenomination is a strategic step to enhance transaction efficiency, strengthen the rupiah’s credibility, and support the modernization of the national payment system,” Denny explained.
He emphasized that the timing of implementation will depend on various factors, including political, economic, and social stability, as well as legal, logistical, and technological readiness.
“Bank Indonesia will remain focused on maintaining rupiah stability and supporting economic growth throughout the redenomination process,” he said.
The redenomination plan is also outlined in Finance Minister Regulation (PMK) No. 70 of 2025 concerning the Finance Ministry’s Strategic Plan for 2025-2029. The regulation, signed by Finance Minister Purbaya Yudhi Sadewa and enacted on November 3, 2025, targets the completion of the bill by 2027.
“The Bill on the Change of Rupiah Exchange Rate (Redenomination) is a launch bill planned for completion in 2027,” the PMK document states.
However, some economists have criticized the plan, arguing that it offers little practical benefit to the economy.
Syafruddin Karimi, an economist from Andalas University, described the redenomination effort as misplaced, saying the government should instead prioritize boosting productivity to achieve its 8 percent economic growth target.
“Redenomination will not affect purchasing power, real income, or job creation,” Syafruddin said in a written statement on Sunday, November 9, 2025. “Indonesia does not need the illusion of stability through a new denomination; what it needs is meaningful growth that benefits the people.”
He also questioned the claim that redenomination would improve bookkeeping and accounting efficiency, noting that there is no empirical evidence showing such measures lead to higher investment or economic expansion.
According to him, the benefits are mostly psychological and symbolic rather than substantive.
“In many countries, redenomination is undertaken out of urgent necessity, such as in times of hyperinflation,” he said. “Indonesia is not facing that situation.”
Syafruddin further noted that the redenomination process would incur significant costs, as it would require the government to reprint all existing banknotes and coins.
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