Jakarta — Indonesia is moving forward with a long‑discussed plan to redenominate its currency, the rupiah. Finance Minister Purbaya Yudhi Sadewa announced that the government has included the redenomination bill in the 2025–2029 National Medium‑Term Legislative Program, with the goal of simplifying the currency by removing three zeros.
Under this plan, Rp1,000 will be converted into Rp1, without changing the actual value or purchasing power. The redenomination is intended to make transactions more efficient, improve accounting practices, and strengthen Indonesia’s financial credibility in global markets.
The framework is outlined in Finance Ministerial Regulation No. 70/2025, which sets the strategic roadmap for 2025–2029. The draft law on rupiah redenomination is expected to be completed by 2027, with implementation following once Bank Indonesia and the government deem conditions stable.
Purbaya emphasized that redenomination is not a devaluation. “This is purely a simplification of numbers, not a reduction in value,” he explained, underscoring that the policy aims to modernize Indonesia’s monetary system while maintaining economic stability.
Analysts note that the timing of redenomination will be crucial. With the rupiah currently under pressure against the US dollar, policymakers must ensure that investor confidence and macroeconomic stability are preserved.
For Indonesia, the redenomination represents more than a technical adjustment. It is a symbol of economic transformation, signaling readiness to align with international standards and project a stronger national identity through its currency.
