Indonesia plans rupiah redenomination removing 3 zeros by 2027. IDR1,000 becomes IDR1, value unchanged
PETALING JAYA: The Indonesian government has begun drafting legislation on rupiah redenomination, which is expected to be completed by 2027, according to ANTARA news agency.
The bill is listed among the Ministry of Finance’s strategic programmes for the 2025–2029 period under Finance Ministry Regulation No. 70 of 2025.
The proposed Rupiah Rate Amendment Bill (redenomination) aims to remove three zeros from the rupiah denomination without changing purchasing power, with the goal of improving efficiency and simplifying financial transactions.
For example, IDR1,000 will become IDR1 after redenomination, but the value of goods and purchasing power will remain unchanged.
The regulation states that redenomination aims to enhance economic efficiency by strengthening competitiveness and maintaining growth momentum.
“It is also expected to help stabilise the rupiah’s value, maintain purchasing power, and enhance currency credibility at both national and global levels,” according to the regulation.
Removing zeros from the old rupiah has been part of the government’s agenda, with several administrations preparing plans for redenomination.
In 2023, Bank Indonesia Governor Perry Warjiyo was reported as saying the central bank was ready to support the policy, although implementation must be carried out carefully and consider economic and political stability.
Earlier in 2017, then-Deputy Governor Mirza Adityaswara was quoted saying the redenomination process could take up to 10 years and must include public education to prevent confusion about purchasing power.
