Indonesia is getting closer to simplifying its currency system. The long-discussed redenomination of the rupiah, essentially trimming the number of zeros from the existing currency, is finally set to be discussed between Bank Indonesia (BI), the Government, and the House of Representatives (DPR).
This move comes after Finance Minister Purbaya Yudhi Sadewa announced that the government aims to finalize the regulation for rupiah redenomination through the Draft Law on Changes to the Rupiah Value between 2026 and 2027. Bank Indonesia has confirmed that discussions are officially underway.
“Bank Indonesia, together with the Government and the House of Representatives, will continue discussions on the redenomination process,” said BI’s Head of Communication Department, Ramdan Denny Prakoso, in a written statement on Monday (November 10, 2025).
According to Ramdan Denny, the Draft Law on Redenomination has already been included in the 2025–2029 Medium-Term National Legislation Program (Prolegnas). The bill is being proposed by the Government based on Bank Indonesia’s initiative.
As for its implementation, Ramdan explained that redenomination will only proceed when the timing is right. Factors such as political stability, economic and social conditions, as well as technical readiness—including legal frameworks, logistics, and information technology—will all be carefully considered.
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“Bank Indonesia will remain focused on maintaining the stability of the rupiah’s value and supporting economic growth throughout the redenomination process,” he stated.
Ramdan emphasized that redenomination is a strategic step. Simplifying the number of digits on the rupiah denominations—without reducing purchasing power or the currency’s real value—would, in his view, enhance both efficiency and credibility.
“This is a strategic move to improve transaction efficiency, strengthen the rupiah’s credibility, and support the modernization of the national payment system,” he said.
The plan to redenominate the rupiah through a Draft Law on the Change of Rupiah Value isn’t new. Bank Indonesia first floated the idea back in 2010, when then-Finance Minister Agus Martowardojo submitted the draft law to the DPR. It even made its way into the 2013 priority legislative program (Prolegnas).
However, despite recurring mentions in the Ministry of Finance’s strategic plans, progress has been slow. During Sri Mulyani Indrawati’s tenure as Finance Minister, for example, the redenomination agenda was again included in the Ministry’s 2020–2024 strategic plan but never moved forward.
Recently, Finance Minister Purbaya Yudhi Sadewa took another step by instructing the Directorate General of Treasury to draft the new legislation. He set a target to complete the regulatory framework by 2026 and finalize the draft by 2027. These goals were formalized in Minister of Finance Regulation (PMK) Number 70 of 2025, issued on October 10, 2025, and enacted on November 3, 2025.
After more than a decade of discussion and delays, the redenomination of the rupiah now seems to be back on track—this time, with clearer direction and a concrete legislative timeline.
