Currency of Indonesia: Jokowi Approves Rupiah Redenomination Plans
In local Indonesian media it is reported that Indonesian President Joko Widodo has given his blessing to the central bank (Bank Indonesia)'s plan to redenominate the rupiah. Bank Indonesia has already prepared a draft bill on the redenomination of the Indonesian Rupiah with the aim to improve economic efficiency and to create smoother commercial transactions. While the rupiah value would remain unchanged, the draft bill eyes to remove the last three zeros on all rupiah bills and coins.
Bank Indonesia's draft bill is now expected to be discussed in a plenary session of the cabinet before being formally submitted to the House of Representatives (DPR).
Bank Indonesia Governor Agus Martowardojo met President Joko Widodo at the Presidential Palace in Jakarta on Tuesday (25/07). Based on a statement from Martowardojo - made directly after the meeting - Widodo welcomed the rupiah redenomination initiative. In 2013 there had also emerged serious plans to redenominate Indonesia's currency. However, the economic slowdown of the Indonesian economy caused attention to shift to other matters.
"If the draft bill is agreed upon by the cabinet in a plenary session, then the bill will need to be discussed in Indonesia's House of Representatives, possibly somewhere in late-2017," Martowardojo said. Earlier, Bank Indonesia already met nearly all fractions within the House and received positive feedback about the redenomination initiatives.
With President Widodo's positive reaction, Martowardojo will now coordinate matters with Indonesian Finance Minister Sri Mulyani Indrawati and Indonesian Minister of Law and Human Rights Yasonna Laoly.
Bank Indonesia's draft bill on the rupiah denomination only contains 17 articles and therefore discussions should require a relatively short time.
