Finance Minister Purbaya Yudhi Sadewa plans to propose four draft bills (Rancangan Undang-Undang or RUU) under the 2025–2029 National Medium-Term Legislative Program (Prolegnas).  

One of the most notable is the Draft Bill on Rupiah Redenomination, which aims to simplify the nominal value of the national currency — for instance, changing IDR 1,000 to IDR 1. 

The plan is outlined in Minister of Finance Regulation (PMK) No. 70 of 2025 on the Strategic Plan of the Ministry of Finance for 2025–2029, which targets the completion of the Redenomination Bill by 2027. 

Responding to the plan, Bank Indonesia (BI) emphasized that although the bill’s completion target is set for 2027, The implementation of this policy will take into account appropriate conditions and timing. 

“The execution will take into account political, economic, and social stability, as well as technical readiness, including legal, logistical, and information technology aspects,” said Executive Director of BI’s Communication Department Denny Nugroho in a written statement on Monday, November 10. 

Denny added that during the discussion and preparation process, BI would continue to focus on maintaining the stability of the rupiah and supporting national economic growth. 

Will Not Affect Purchasing Power 

He assured that the redenomination process would not reduce the value of the rupiah or the purchasing power of the public. 

“Redenomination is merely a simplification of the number of digits in the rupiah denominations, without diminishing the currency’s value or its purchasing power against goods and services,” Denny explained. 

According to him, the move serves as a strategy to improve transaction efficiency, strengthen the credibility of the rupiah, and support the modernization of Indonesia’s national payment system. 

“The redenomination process will be carried out carefully and involve close coordination among all stakeholders,” he said. 

Denny noted that the Redenomination Bill has officially been included in the 2025–2029 Medium-Term Prolegnas as a government initiative proposed by Bank Indonesia. BI, together with the government and the House of Representatives (DPR), will continue in-depth discussions on the implementation stages of the redenomination policy. 

This article is published in partnership with Katadata 

Original article here