Jakarta, Indonesia Sentinel — Indonesia’s Finance Minister Purbaya Yudhi Sadewa announced the rupiah redenomination plans to simplify the country’s currency, effectively turning Rp1,000 into Rp1. The policy targeted for completion by 2027.
The plan is outlined in the Ministry of Finance Regulation (PMK) No. 70 of 2025 on the ministry’s 2025–2029 Strategic Plan, which was signed on October 10 and officially enacted on November 3, 2025.
The government is currently drafting the Bill on Rupiah Redenomination, which is expected to be finalized by 2027. “The Bill on the Change in Rupiah Value (Redenomination) is a carryover legislative initiative expected to be completed by 2027,” the regulation states.
Redenomination refers to simplifying a country’s currency by removing a number of zeros from its nominal value without changing its actual purchasing power. For instance, if an item is priced at Rp1,000 before redenomination, it would become Rp1 afterward, with the value of goods and money remaining the same.
According to Minister Purbaya, the redenomination proposal, which has been under discussion since 2013, aims to enhance economic efficiency, maintain macroeconomic stability, and strengthen public confidence in the national currency. It is also intended to preserve the rupiah’s purchasing power and credibility.
The Directorate General of Treasury at the Ministry of Finance has been appointed as the lead agency responsible for drafting the bill.
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In addition to the redenomination bill, the ministry is also preparing three other draft laws which is the Valuer Bill, expected to be completed this year, as well as the Auction Bill and the State Asset Management Bill, both targeted for completion in 2026.
“To achieve the strategic objectives of the Ministry of Finance, four draft laws under the ministry’s jurisdiction have been included in the 2025–2029 medium-term national legislative program,” the regulation adds.
(Raidi/Agung)
