Jakarta (ANTARA) - The government has started drafting a bill on rupiah redenomination, which is expected to be completed in 2027.
The bill is listed among the Finance Ministry's strategic programs for the 2025–2029 period under Finance Minister Regulation No. 70 of 2025.
"A bill on Rupiah Rate Change (redenomination) is a carried-over bill planned for completion in 2027," the regulation stated.
The bill proposes removing three zeroes from rupiah denominations without changing their purchasing power, aiming to improve efficiency and simplify financial transactions.
For instance, Rp1,000 would become Rp1 after redenomination, but the value of goods or purchasing power would remain unchanged.
The regulation noted that redenomination aims to enhance economic efficiency by strengthening competitiveness and maintaining growth momentum.
It is also expected to help stabilize the rupiah's value, maintain purchasing power, and boost the currency's credibility at national and global levels.
Removing zeroes from the rupiah has long been part of the government's agenda, with several administrations preparing plans for redenomination.
In 2023, Bank Indonesia Governor Perry Warjiyo said the central bank was ready to support the policy, though its execution must be cautious and consider economic and political stability.
Earlier in 2017, then–Deputy Governor Mirza Adityaswara said the redenomination process could take up to 10 years and must include public education to prevent confusion over purchasing power.
