Indonesian Rupiah Redenomination

By

Anang Syaifuddin Nurul Fadli

Information System / 10151006

Topics that are attracting public attention today is the rupiah redenomination. Redenomination is simplification of the value of the currency or in other words a reduction in the value of the currency, but does not reduce the exchange rate of the currency reduced. Bank Indonesia’s plans to conduct rupiah redenomination lot of criticism from various parties of economists, stock market analysts, business people and others. Bank Indonesia said the rupiah redenomination is not the same as sanering or cutting currency values. Because, in the redenomination although the last three zeros eliminated, but the value is the same. We must support the government's program to stabilize the economy in Indonesia.

“We have seen the example of Turkey that has implemented a successful example of a redenomination policy and now has a stronger sovereign currency” the BI governor said. Judging from impact to the community. For example, Rupiah value Rp .1.000, - (one thousand rupiah) will be Rp. 1, - (one rupiah), Rp. 10.000, - will be Rp. 10, - (the point value of the currency is now reduced to a three-digit nominal). The redenomination, no loss because the purchasing power remains the same. While in sanering, caused many losses because purchasing power has fallen dramatically.

In the Indonesian rupiah redenomination has the benefits of reducing adjustments on hardware and software to accommodate digit increases. And the current capability of the computer could only accommodate 15-digit number while the value of APBN has reached 16 digits. That is why it can provide a positive impact for the banking sector. Judging from side of the goal. Rupiah redenomination aims to simplify the denominations to be more efficient and comfortable in a transaction performs.   

The next goal, preparing for economic equality Indonesia with regional countries. In redenomination value of money against goods does not change, because only the way of calling and writing denominations are adjusted. Redenomination performed when macroeconomic conditions stabilize. Economic growth and inflation under control.

The rupiah redenomination plan will be fully implemented in 2022 later, and for a period of socialization implemented gradually beginning in 2013. During the socialization, will use two types of currency rupiah rupiah is old and new rupiah. So during the transition period, the public can choose to pay for goods with rupiah currency old or new rupiah currency. Finally, we understand the redenomination no loss, it can simplify the currency to be more efficient and comfortable in a transaction performs, and preparing for economic equality Indonesia with regional countries.

(414 words) 

References:

• www.thejakartapost.com/news/2014/08/19/new-banknotes-launched-redenomination-will-go.html
• http://www.redenominasirupiah.com/