Bank Indonesia Outlines Comprehensive Roadmap for Rupiah Redenomination

Six-Year Implementation Plan Unveiled

Bank Indonesia has revealed a detailed six-year plan for the redenomination of the Indonesian Rupiah, marking a significant step towards currency simplification. The process will involve four critical stages, beginning with the establishment of a special legal framework through a dedicated Redenomination Law ¹

Key Stages of Redenomination Process

1. Legal Framework Development: The first stage involves creating a specific law governing the redenomination process
2. Price Transparency Regulations: Following legal clarity, the government and BI will develop regulations to ensure price transparency during the transition
3. New Currency Design and Production: BI will prepare the design and printing of new currency
4. Parallel Circulation: The final stage involves ensuring both old and new currency circulate simultaneously

Technical Details and Implementation Timeline

BI Governor Perry Warjiyo explained that the entire process, from the passage of the law to full implementation, is expected to take 5-6 years ¹

Economic Rationale and Benefits

The redenomination aims to achieve four primary objectives:

1. Economic efficiency through enhanced national competitiveness
2. Sustainable economic development
3. Currency stability and maintained purchasing power
4. Increased currency credibility

Recent Developments and Future Prospects

The redenomination plan, first studied in 2010, has faced multiple delays. Recent developments include the inclusion of the Redenomination Bill in the 2025-2029 strategic plan by Finance Minister Purbaya Yudhi Sadewa, with a target completion date of 2026 for the legislation ¹