Bank Indonesia Considers the Right Momentum for Rupiah Redenomination

Jakarta: Rupiah redenomination is planned, but Bank Indonesia is still considering the right timing. This includes considering political, economic, and social stability, as well as technical readiness, including legal, logistical, and information technology.

"Bank Indonesia will remain focused on maintaining the stability of the rupiah and supporting economic growth during the redenomination process," said Head of the BI Communications Department, Ramdan Denny Prakoso, in an official statement, reported by Antara, Monday, November 10, 2025.

Bank Indonesia also ensured that the redenomination process was carefully planned and involved close coordination among all stakeholders.

Currently, the Redenomination Bill (RUU) has been included in the 2025-2029 Medium-Term National Legislation Program (Prolegnas), as a government-initiated bill proposed by Bank Indonesia.

Furthermore, Ramdan Denny stated that Bank Indonesia, along with the government and the House of Representatives (DPR), will continue to discuss the redenomination process.

Rupiah redenomination is the simplification of the number of digits in rupiah denominations without reducing the purchasing power and value of the rupiah against the price of goods and/or services. Bank Indonesia stated that this is a strategic step to increase transaction efficiency, strengthen the credibility of the rupiah, and support the modernization of the national payment system.

Redenomination targeted for completion in 2027

As previously reported, the government is preparing a bill on Rupiah Price Changes (Redenomination), with a target completion date of 2027. The preparation of the bill is stipulated in Minister of Finance Regulation (PMK) Number 70 of 2025 concerning the Ministry of Finance's Strategic Plan for 2025-2029.

The PMK explains that the Ministry of Finance is preparing four draft laws: the Bill on Auctions, the Bill on State Asset Management, the Bill on Rupiah Price Changes (Redenomination), and the Bill on Appraisers.

The PMK also mentions several urgencies for the formation of the Redenomination Bill, including for economic efficiency to be achieved through increasing national competitiveness, maintaining the continuity of national economic development, maintaining a stable rupiah value as a form of maintaining people's purchasing power, and increasing the credibility of the rupiah.