Government of Indonesia has prepared a draft bill on the Rupiah redenomination to improve economic efficiency and commercial transactions. The plan is stated in Minister of Finance Regulation (PMK) No. 77/2020 which is targeted to be completed in 2021 to 2024.
The bill suggests to removing the final three digits of the current Rupiah, such as Rp1,000 would be shortened to Rp1. By removing the final three digits, the use of the Rupiah would be simplified, however, the value of the Rupiah would remain the same. The redenomination bill urgency will “lead to economic efficiency in transaction acceleration, reduced risk of human error, and the efficiency of price listing of goods/services.
