The Indonesian Central Bank (BI) confirms that the long-discussed plan to redenominate the rupiah has been incorporated into the government’s Medium-Term National Legislation Program (Prolegnas) 2025–2029, marking a significant step toward simplifying the national currency structure.

BI spokesman Ramdan Denny Prakoso said the Redenomination Bill, formally known as the Draft Law on the Rupiah Value Change, is a government initiative based on BI’s proposal. The process, he said, is being prepared carefully and involves close coordination among all relevant stakeholders.

“The Redenomination Bill has been included in the 2025–2029 legislation program as a government initiative based on BI’s proposal,” Denny said as quoted in a statement on Monday, November 10, 2025.

He added that the central bank, together with the government and the House of Representatives (DPR), will continue to discuss the bill in the coming months to ensure a smooth and comprehensive transition process.

Redenomination refers to the simplification of the number of digits in the rupiah denominations without changing its real purchasing power or value against goods and services.

Denny said the move aims to increase transaction efficiency, enhance the credibility of the rupiah, and support the modernization of Indonesia’s national payment system.

“The redenomination is a strategic step to improve efficiency and strengthen the credibility of our currency,” he said, while emphasizing that BI will continue to focus on maintaining monetary stability and economic growth during the transition period.

He, however, noted that the implementation timeline will depend on the country’s readiness including macroeconomic stability, political and social conditions, and technical preparedness, such as regulatory frameworks, logistics, and information technology systems.

Completion target

The government has set 2027 as the target year to complete the redenomination process, as outlined in the Finance Ministry’s Regulation No. 70/2025 on the Ministry’s Strategic Plan for 2025–2029.

The redenomination initiative has been under discussion for more than a decade, with policymakers citing potential benefits, such as simplifying accounting systems, improving public trust in the currency, and aligning Indonesia’s monetary structure with global standards.

The government has officially revived its long-discussed plan to redenominate the rupiah, with the Finance Ministry putting the initiative into its 2025-2029 Strategic Plan (Renstra) as stipulated in Finance Minister Regulation (PMK) No. 70/2025. The ministry’s Directorate General of Treasury will lead the drafting of the Redenomination Bill (RUU Redenominasi Rupiah).

Besides the redenomination bill, the Finance Ministry will also work on three other draft laws during the 2025–2029 period: the Auction Bill, the State Assets Management Bill, and the Appraiser Bill.

According to the ministry document, the government is pursuing redenomination for four main reasons: to improve economic efficiency and national competitiveness, ensure sustainable economic growth, maintain a stable rupiah value as a safeguard of purchasing power, and enhance the credibility of Indonesia’s currency in both domestic and international markets.

“The Redenomination Bill is a rolling initiative expected to be finalized by 2027,” the document reads.