The government has begun finalizing the Draft Law (RUU) on Rupiah Price Changes or redenomination, which is targeted for completion in 2027. This agenda is stated in the Minister of Finance Regulation (PMK) Number 70 of 2025 concerning the Ministry of Finances Strategic Plan 2025–2029, which was signed on October 10, 2025. In this regulation, the preparation of the Redenomination Bill is under the responsibility of the Directorate General of Treasury (DJPb). Overall, the Ministry of Finance is preparing four draft laws, namely the Auction Bill, the State Asset Management Bill, the Rupiah Price Change (Redenomination) Bill, and the Appraisal Bill. The Bill on Changes in the Rupiah Price (Redenomination) is a draft bill planned to be finalized in 2027, the policy reads, as quoted on Friday

In the Ministry of Finances Strategic Plan, the urgency of drafting the Redenomination Bill is explained, among other things, to create economic efficiency, strengthen national competitiveness, maintain sustainable economic growth, and ensure the rupiah remains stable, thus protecting peoples purchasing power. This policy is also aimed at increasing the rupiahs credibility in the public eye. Redenomination itself means simplifying rupiah figures by removing some zeros behind the nominal value without changing the value. The price of an item worth Rp 1,000, for example, will be written as Rp 1 after redenomination, but its value and purchasing power remain unchanged. Purbayas Plan and Redenominations Position in the Ministry of Finances Program Finance Minister Purbaya Yudhi Sadewa included the Redenomination Bill as one of the Ministry of Finances medium-term strategic programs in PMK 70/2025. In the document, Purbaya identified four priority bills, including the redenomination being carried out by the Directorate General of Taxes and Excise. The Bill on Changes in the Rupiah Price (Redenomination) is a draft bill that is planned to be completed in 2027, the regulation states. This plan also continues the redenomination initiative initiated by Bank Indonesia in 2010 and is now integrated as part of the medium-term fiscal policy agenda.

What is redenomination and what are its benefits? As reported by Kompas.com on March 14, 2025, redenomination is the removal of zeros from a currency without changing its real value or purchasing power. A simple example is the nominal value of Rp 1,000 changing to Rp 1, but the value of goods remains the same. This step is considered important to create payment system efficiency, reduce technical burdens such as limited counting machine capacity, and make transactions more practical. In PMK 70/2025, Purbaya emphasized that redenomination is needed to increase the credibility of the rupiah in the eyes of the public and the international community and maintain purchasing power stability. Stages of redenomination implementation The redenomination process will follow the roadmap of the Ministry of Finances 2025–2029 Strategic Plan. After the bill is targeted for completion in 2027, the next stages include socialization, financial system adjustments, and a transition period during which the old and new rupiah will circulate together. Also read: DPR Will Discuss Plan to Eliminate BPJS Kesehatan Contribution Arrears Several countries have already taken similar steps. Turkey, for example, implemented a seven-year redenomination process from 2005 to 2009, supported by a stable economy. Finance Minister Purbaya emphasized that the success of the process in Indonesia will depend heavily on national economic conditions and public trust in this policy. Through redenomination, the government hopes to strengthen the economic foundation and increase the credibility of the rupiah as a symbol of national stability and trust.

Source : www.kompas.com

Nov 8, 2025