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Jakarta Post

It is time for rupiah redenomination, central bank says

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, May 30, 2017   /   02:05 pm
It is time for rupiah redenomination, central bank says Bank Indonesia (BI) Governor Agus Martowardojo shows rupiah banknotes introduced on Dec. 19. (Antara/Yudhi Mahatma)

Bank Indonesia Governor Agus Matowardojo has reiterated his call on the government and lawmakers to redenominate the rupiah, stressing that it is the best time to do so, considering good indications in the country’s economy.

If the redenomination kicks off now, it can be fully implemented in 2024 or 2025, he added.

Agus cited a number of economic parameters, including an 3.02 percent inflation rate and 5.02 economic growth rate last year, as well as an 5.01 percent economic growth rate in the first quarter of 2017.

“Everything is good. So, it is time to redenominate our currency and we have a transition period of up the next eight years,” Agus said as reported by kontan.com on Tuesday.

(Read also: Central Bank keeps redenomination hope alive)

The government previously has submitted a rupiah redenomination bill to the House of Representatives, but lawmakers have not include it on its list of bills to deliberate between 2015 and 2019.  

Agus expressed the hope that the government and the House would immediately deliberate the bill because the redenomination would help improve efficiency and accountability.

“The bill only consists of 18 articles. They need to deliberate it,” he added.

The plan to slash three zeroes off the local currency had been floated by the previous administration in 2013. However, the deliberation by the House was postponed in 2014 due to an unfavorable economic situation. (bbn)