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Indonesia’s finance ministry said it is planning a new Bill to redenominate the rupiah in an effort to improve economic efficiency, maintain stability and improve the currency’s credibility.
“The Bill on redenomination is a carryover draft Bill that is planned to be finalised in 2027,” a ministry regulation reviewed on Saturday showed.
The plan to slash zeros from the currency has been discussed in past years. Jakarta Globe reported that policymakers cited three main considerations then: Domestic and global macroeconomic conditions, monetary and financial system stability, and social-political dynamics.
It was not immediately clear how many digits would be removed under the latest redenomination plan, though state news agency Antara reported on Saturday (Nov 8) that the Bill proposes removing three zeros from rupiah denominations.
Local news outlet Jakarta Globe reported that the latest measure appeared in Finance Ministry Regulation (PMK) No 70/2025 on the ministry’s 2025–2029 strategic plan, issued on Oct 10 and enacted on Nov 3. Currently, rupiah banknotes range from 1,000 to 100,000 in denominations. A 100,000 rupiah note is equivalent to US$6.
Redenomination would remove the number of digits on currency without altering purchasing power or the exchange rate.
Why The Plan Is Back Now ?
After being postponed for more than a decade, Indonesia’s redenomination plan is officially back. It’s written in Finance Ministry Regulation No. 70/2025, part of the 2025–2029 strategic roadmap,with the goal to finalise it by 2027.