Alfi Dinilhaq, Jakarta – Indonesia is preparing a draft law to redenominate the rupiah – a long-discussed plan to trim zeros from the currency – with the legislation targeted for completion in 2027.

The measure appears in Finance Ministry Regulation (PMK) No. 70/2025 on the ministry's 2025-2029 strategic plan, issued on Oct. 10 and enacted on Nov. 3.

"The bill on the redenomination of the rupiah is a carried-over bill that is planned for completion in 2027," the document states.

Redenomination would remove several zeros from rupiah denominations without altering purchasing power. For example, Rp 1,000 would become Rp1, but the value of goods and services remains unchanged.

Officials argue the move is intended to improve economic efficiency, increase the rupiah's credibility, and enhance Indonesia's competitiveness, while reinforcing confidence in the national currency.

The idea of trimming rupiah digits has periodically resurfaced for more than a decade.

In 2023, Bank Indonesia said it was technically ready to implement redenomination, including design work and operational planning, but had not yet found the right timing. Policymakers cited three main considerations: domestic and global macroeconomic conditions, monetary and financial system stability, and social-political dynamics. The central bank emphasized that redenomination is not devaluation, but past experiences (inflation, currency crises) make the public cautious.

A similar discussion emerged in 2016 under President Joko Widodo and then-BI Governor Agus Martowardojo. A draft bill was submitted to the legislature in 2015, but it has never been passed.

Source: https://jakartaglobe.id/business/rp1000-becomes-rp1-indonesia-eyes-rupiah-redenomination-bill-by-202