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Redenomination bill not to be deliberated this year
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Rupiah banknotes are taken to the central bank's note exchange center at the Bank Indonesia building in Jakarta on Jan. 26, 2016. (JP/Wienda Parwitasari)
Bank Indonesia’s (BI) hopes of lawmakers deliberating the redenomination bill this year have been dashed.
A House of Representatives plenary session on Wednesday approved six bills to be included in the revised National Legislation Program (Prolegnas) for this year, namely bills on water resources, on copyright of printed and recorded work, on tax consultant, on social work practices, on music and on customary land rights.
"The government is not yet willing [to propose the redenomination bill] because of the approaching political years [in 2018 and 2019]," House Legislative Body (Baleg) deputy chairman Firman Subagyo said.
The government, he said, had to comprehensively disseminate information about the bill to avoid public misunderstanding that could lead to social unrest. "If the bill was approved now to become a law, the psychological risk would have to be contained."
The bill on redenomination, if approved, will slash three zeroes off the local currency.
BI Governor Agus Matowardojo revived the idea of rupiah redenomination, which was first floated in 2013, stressing that this year was the best time to start the process, considering the sound and stable economic condition.
However, Finance Minister Sri Mulyani Indrawati said the government would not propose the bill for deliberation at the House this year. President Joko "Jokowi" Widodo has gone as far as saying the policy would not be implemented in the near future.
"It seems that the government won't deliberate it even next year," Firman said. (ags)
