TEMPO.CO, Jakarta - Indonesia has been planning to redenominate the rupiah currency for some time now. President Joko Widodo or Jokowi said that the plan cannot be applied in the near future.
"It's a very long way away, so we are still discussing," Jokowi said after attending the Inflation Control Team's National Coordination Meeting in Jakarta, Thursday.
Read: Rupiah Redenomination Process Will Take 11 Years
The rupiah redenomination plan has been prepared well in advance, with the bill's draft prepared for the 2017's Priority Legislation Programs. However, until now, the draft has not been submitted to the DPR because there is no Presidential Decree yet from Jokowi.
The redenomination discussion will take time because it is still in the early stages. "The government is still calculating the impact, urgency, and proper timing for implementation," he said.
The aim of redenomination is to change the image and perception of the rupiah against other foreign currencies, for example, with the US dollar.
"The implementation is still 11 years away, but still, all elements must be calculated," the president said.
Read: Minister Darmin: Rupiah Redenomination Will Not Take Long
Previously, Bank Indonesia (BI) Governor Agus Martowardojo said that a redenomination requires stable economic conditions, to avoid shocking the public if the face value of the rupiah changes drastically.
BI has mapped out the transitional period for a rupiah redenomination, if it is implemented this year. If the redenomination plan starts in 2017, then 2018-2019 will be the years of preparation. By 2020, direct implementation should commence.
ISTMAN MP
