🇮🇩 Indonesia Prepares RUU for Rupiah Redenomination — Will the Zeros in Rupiah Be Eliminated?
The Indonesian government through the Ministry of Finance plans to prepare a Draft Law (RUU) for Rupiah Redenomination. This step will cut the number of zeros in the national currency — for example, Rp 1,000 becomes Rp 1 — without changing the exchange rate or the purchasing power of the people.
This plan is not new. Similar discussions have emerged since 2013, but were postponed due to the government's focus on economic stability. This time, the process is being discussed again and is targeted to be completed around the year 2027.
The main goal of redenomination is to achieve efficiency and modernization of the financial system, so that transactions become simpler and the credibility of the Rupiah increases in the global arena. Many countries have done similar things to adjust the nominal scale of their currencies to more stable economic conditions.
This plan is not new. Similar discussions have emerged since 2013, but were postponed due to the government's focus on economic stability. This time, the process is being discussed again and is targeted to be completed around the year 2027.
The main goal of redenomination is to achieve efficiency and modernization of the financial system, so that transactions become simpler and the credibility of the Rupiah increases in the global arena. Many countries have done similar things to adjust the nominal scale of their currencies to more stable economic conditions.
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