Indonesia redenomination plans move a step closer to implementation

According to an article in The Jakarta Post dated 7 December 2011, the government has approved Bank Indonesia’s proposal to redenominate the rupiah by eliminating three zeros. A draft law is being finalized and still needs to be approved by the Law and Human Rights Ministry, then passed by the House of Representatives.

Bank Indonesia announced that the rupiah’s redenomination would be carried out in four stages over 10 years to minimize public confusion: information campaign to alert the public (2011-2012), transition period (2013-2015), the gradual withdrawal of the “old” rupiah (2016-2018), and the use of the “new” rupiah (2019-2020).

The redenomination would mean the 1,000-rupiah banknote, the nation’s smallest denomination, would become a 1-rupiah note, but the value would remain the same (currently US$0.10).