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Jakarta Post

House lawmaker supports rupiah redenomination

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, July 24, 2017   /   04:04 pm
House lawmaker supports rupiah redenomination Two women hold up newly released banknotes at a Bank Indonesia representatives office in Riau Islands, Batam, on Dec. 19. (Antara/M N Kanwa)

A member of the House of Representatives Commission XI overseeing financial affairs, Misbakhun, has called on fellow lawmakers to immediately add the rupiah redenomination bill to the National Legislation Program (Prolegnas) so that it could be immediately passed into law.

“With its inclusion into Prolegnas, the bill could be immediately deliberated,” said Misbakhun, a lawmaker from the Golkar Party, in Jakarta on Sunday as reported by kompas.com.

He said the policy, which would result in the removal of three or four zeroes from the rupiah if passed into law, would affect payment systems but not the value of the currency.

Read also: Government supports BI’s proposal to redenominate rupiah

Therefore, close coordination between the government and Bank Indonesia was needed so that the process could take place smoothly, he said.

The redenomination was also needed because the rupiah exchange rate against the US dollar had reached Rp 13,000, a figure that did not reflect Indonesia's standing as the 16th strongest economy in the world, Misbakhun said.

Previously, Bank Indonesia Governor Agus Martowardojo called on the House to immediately deliberate the redenomination bill, stressing that the economic conditions of the country were conducive to implementing the policy.

Coordinating Economic Minister Darmin Nasution also supported the idea, saying that the government would keep inflation between 3 and 4 percent to make the redenomination possible. (bbn)