THE Indonesian government has begun drafting legislation for the redenomination of the rupiah, with completion expected by 2027, according to a report by ANTARA.
The proposed law is listed among the strategic programmes of the Ministry of Finance for 2025–2029 under Minister of Finance Regulation No. 70 of 2025.
The legislation, known as the Rupiah Denomination Change Bill, aims to remove three zeros from the currency without altering its purchasing power, in a move intended to enhance economic efficiency and simplify financial transactions.
For example, 1,000 rupiah would become 1 rupiah under the new system, while the value of goods and purchasing power would remain unchanged.
The regulation states that the redenomination is designed to strengthen economic efficiency, reinforce competitiveness, and maintain growth momentum. “
“It is also expected to help stabilise the rupiah, preserve purchasing power and boost the currency’s credibility at national and global levels,” the regulation said.
The removal of zeros from the rupiah has been part of the government’s agenda for some time, with previous administrations also preparing plans for redenomination.
In 2023, Bank Indonesia Governor Perry Warjiyo indicated the central bank’s readiness to support the policy, noting that implementation must be cautious to ensure economic and political stability.
Earlier, in 2017, then-Deputy Governor Mirza Adityaswara said the redenomination process could take up to 10 years and should include public education to prevent confusion over purchasing power. - November 9, 2025
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