Palace Says Rupiah Redenomination Plan Not Coming Anytime Soon

Jakarta: Minister of State Secretary Prasetyo Hadi stated that the implementation of rupiah redenomination will not be implemented in the near future.

"Not yet, it's still a long way off," he said briefly at the Presidential Palace Complex, Jakarta, as reported by Antara, Monday, November 10, 2025.

The government is currently preparing a Draft Law (RUU) 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 Bill on Changes in the Rupiah Price (Redenomination) is a draft bill planned for completion in 2027," stated the Minister of Finance Regulation, as quoted in Jakarta on Friday, November 7, 2025.

The Bill on Redenomination

The bill regulates the simplification of the nominal value of the rupiah without changing its real value or purchasing power. Simply put, redenomination means removing some zeros from the rupiah's nominal value to make it more efficient and easier to use in transactions, without making the currency more or less valuable.

For example, if before redenomination the currency unit was recorded at Rp1,000, after redenomination it would become Rp1, without changing the value of goods or people's purchasing power.

The regulation also explains several important reasons for drafting the Redenomination Bill, including increasing economic efficiency through national competitiveness, maintaining sustainable economic growth, stabilizing the value of the rupiah to protect people's purchasing power, and increasing the rupiah's credibility at the national and international levels.