Bank Indonesia Governor to Meet Jokowi over Rupiah Redenomination

TEMPO.CO, Jakarta - Bank Indonesia will propose a draft bill on rupiah redenomination to the House of Representative (DPR) after consulting with President Jokowi.

“We will meet the President, the Law and Human Rights Ministry, and the Finance Ministry so that they can discuss the draft bill with the DPR,” Bank Indonesia governor Agus Martowardojo said in Jakarta, July 18.

Agus expects the government and the DPR to discuss the draft bill that contains 17 articles this year. According to him, the process of the rupiah redenomination would take seven years.

“The preparation will take two years, the period of 2020-2024 will be a transition period and there will be a phase out stage,” he explained.

Read: Rupiah May Weaken as Dollar Gains

Bank Indonesia yesterday held a focus group discussion with the House of Representatives’ commission XI overseeing financial affairs to discuss the draft bill on rupiah redenomination. Agus said the meeting was attended by all House factions.

Agus revealed that the draft bill on Rupiah Redenomination was included in the Priority National Legislation Program (Prolegnas) back in 2013. The central bank wants to include the draft bill in the 2017 Priority Prolegnas.

However, the government cannot yet discuss the draft bill this year since the government and the House are currently focusing on various draft bills in the financial sector following the tax amnesty program.

Agus claimed that the rupiah redenomination must be immediately commenced as the economy is currently favorable. In addition, the inflation rate is somewhere between 3 and 5 percent, and the economy grows by 5 percent.

“We will also take the rupiah exchange into account,” Agus said.

ANGELINA ANJAR SAWITRI