November 12, 2025 | 06:26 pm
TEMPO.CO, Jakarta - Governor of Bank Indonesia, Perry Warjiyo, stated that the plan for the Rupiah redenomination or simplification of the currency value will not be implemented in the near future, emphasizing that the policy requires thorough preparation and time to mitigate any negative impact on the economy.
"Redenomination requires specific timing and longer preparation. For now, we are more focused on maintaining stability and driving economic growth," Perry said during a working meeting with the House of Representatives Commission XI on Wednesday, November 12, 2025.
Bank Indonesia and the government previously included the Rupiah Redenomination Bill in the 2025-2029 National Legislative Program. This bill is a government initiative based on BI's proposal, as outlined in the Finance Ministerial Regulation (PMK) Number 70 of 2025, concerning the Strategic Plan of the Finance Ministry 2025-2029, and signed by Finance Minister Purbaya Yudhi Sadewa on November 3, 2025. The bill is currently targeted for completion by 2027.
Ramdan Denny Prakoso, Head of BI's Communication Department, explained that the primary goal of redenomination is to simplify the number of Rupiah digits without altering the currency's purchasing power or exchange value for goods and services.
"This step is taken to improve transaction efficiency, strengthen the credibility of the Rupiah, and support the modernization of the national payment system," he said in a written statement on Monday, November 10, 2025.
Denny stressed that the implementation of redenomination will carefully consider various aspects, including political, economic, and social stability, alongside legal, logistical, and information technology readiness. He added that BI remains committed to maintaining the stability of the Rupiah and driving economic growth throughout the process.
"The redenomination process will be carefully designed with cross-institutional coordination, including the government and the House of Representatives," he confirmed.
Economist Highlights Risks of Rupiah Redenomination
Offering a counter-assessment, Syafruddin Karimi, an Economist from Andalas University, noted that the core benefit of redenomination has not been empirically proven. According to him, the benefits of redenomination are more psychological and symbolic in nature.
He highlighted the operational and social risks that may arise during the transition period. "When old and new money circulate together, confusion in society, potential administrative errors, and even opportunities for fraud may arise," he said in a written statement on Sunday, November 9, 2025.
Anastasya Lavenia Yudi contributed to the report
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