Akmalal Hamdhi, Jakarta – Bank Indonesia (BI) Governor Perry Warjiyo outlined the steps needed to redenominate the rupiah – simplifying the currency from Rp1,000 to Rp1 – emphasizing that the process would be lengthy.

Perry said that full implementation of redenomination could take around five to six years, covering the entire process, from the passage of a Rupiah Redenomination Law to final preparations before full rollout.

"All stages must proceed in parallel. From the law's enactment to completion, it will take approximately five to six years," Perry told the Parliament on Monday.

The first step is issuing the Redenomination Law, which will serve as the legal foundation. Without this law, the rupiah simplification program cannot begin.

Next, the government must prepare regulations on price transparency for all goods and services in Indonesia. This is necessary to ensure the public clearly understands prices during the transition and to prevent misconceptions that redenomination changes the actual value of goods.

Perry highlighted that current price displays are inconsistent, for example, Rp25,000, Rp 25 thousand, or 25K, making clarity crucial during the transition period.

Subsequent steps include designing and printing the new currency, which will require time and coordination across multiple agencies.

The final stage is a transition period in which old and new notes circulate simultaneously. "During this period, purchases can be made using either the old or new money, and the value remains the same," Perry explained.

Source: https://jakartaglobe.id/business/bi-says-rupiah-redenomination-will-take-56-year