Redenomination Not a Priority: BI Governor

TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Agus Martowardojo said that rupiah redenomination is not a priority in the near future. "Although it is important, redenomination would be only be discussed once the economy is good and the people are in stable condition," Agus said taking his oath at the Supreme Court building, last weekend.

The government, Agus said, will continue to provide insights to the public on the benefits of a rupiah redenomination. The simplification of the currency's face value will give the impression to the global community that the Indonesian economy is advancing.

"We will continue to disseminate to the public that redenomination is different from saneering."

There is still a misperception in the public, equating redenomination with saneering. Redenomination is changing of the face value in banknotes or coins--cutting the digits down without cutting down value. Meanwhile, saneering--a term borrowed from the Dutch language, is the cutting of the value of money, whereas the prices of goods remained.

Agus said that as the governor of the central bank, his priority is to strengthen the monetary policy, especially regarding inflation.

"The stability of the exchange rate and foreign exchange reserves are a main priority," he said.

An economist from Samuel Sekuritas, Lana Soelistianingsih, suggested the new governor to focus on strengthening the rupiah against foreign currencies.

"This policy is necessary to anticipate external shocks which we are quite vulnerable to," she told Tempo.

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