Indonesia Clarifies Position on Rupiah Redenomination

Legislative Progress vs Implementation Timeline

Finance Minister Purbaya Yudhi Sadewa has categorically denied that Indonesia will implement rupiah redenomination in the near future, specifically stating that it will not happen in 2026. The minister emphasized that redenomination is a Bank Indonesia (BI) policy decision, to be implemented according to the central bank's needs and timeline.

Technical and Economic Considerations

The redenomination process, which involves simplifying the currency's denomination without altering its real value, is being carefully considered. BI's Department Head of Communications, Ramdan Denny Prakoso, highlighted that implementation will be gradual and based on careful consideration of political, economic, and social stability, as well as technical readiness including legal, logistical, and technological aspects.

Policy Rationale and Expected Outcomes

The planned redenomination aims to enhance transaction efficiency, strengthen rupiah credibility, and support modernization of the national payment system. Authorities have assured that the process will not affect the currency's purchasing power or exchange value against goods and services. The RUU Redenominasi having been included in the National Legislation Program (Prolegnas) Jangka Menengah 2025-2029 marks a significant step in the legislative process.

Coordination and Implementation Strategy

The process is being coordinated between the government, Bank Indonesia, and the House of Representatives (DPR). While legislative progress has been made, actual implementation remains contingent on achieving the right economic and political conditions. BI has committed to maintaining rupiah stability and supporting economic growth throughout the redenomination process.