Jayanty Nada Shofa, Jakarta – Bank Indonesia has said it will seek the right timing to carry out the country's long-discussed redenomination of the rupiah, stressing that the move to trim three zeros from the national currency must be done carefully to avoid disrupting economic stability.

Under the proposed plan, Rp 1,000 will become Rp 1, though the change will not affect the rupiah's actual value or people's purchasing power.

"We wish to find the right time for implementation, taking into account the country's political, economic, and social stability," said Bank Indonesia spokesman Ramdan Denny Prakoso on Monday. "We will also pay attention to technical readiness, including legal, logistical, and information-technology aspects."

He added that the central bank would remain focused on maintaining rupiah stability and supporting economic growth throughout the redenomination process.

The government has listed the Redenomination Bill as part of its 2025-2029 national legislative priorities, a move expected to accelerate lawmaking. The central bank will continue coordinating with the Finance Ministry and the House of Representatives (DPR) on the details.

"Redenomination is a strategic step to boost transaction efficiency, enhance the rupiah's credibility, and modernize the national payment system," Ramdan said.

Finance Minister Purbaya Yudhi Sadewa has already signed a ministerial regulation outlining the framework for the bill, which targets completion by 2027.

However, several economists have cautioned against rushing the process. Syafruddin Karimi, an economics professor at Andalas University, warned that the redenomination could divert attention from more urgent policy issues, arguing that "new nominal values only create an illusion of stability."

Meanwhile, the Center of Economic and Law Studies (Celios) urged the government to be "extremely careful," noting that other countries have encountered difficulties after similar efforts. Celios cited Ghana's 2007 redenomination, in which the country removed four zeros from its currency but experienced a 5 percent inflation rate the following year.

Source: https://jakartaglobe.id/business/bank-indonesia-seeks-right-timing-for-rupiah-redenomination-pla