KUALA LUMPUR – Indonesia’s finance ministry is drafting a bill aimed at redenominating the rupiah, with the process expected to be completed by 2027.
According to Reuters, the proposed legislation is part of the Ministry of Finance’s strategic programme for 2025–2029.
“The bill on Rupiah Denomination (redenomination) is a follow-up draft law, which is planned for completion by 2027,” according to the regulations.
The bill proposes the removal of three zeros from the rupiah without affecting its purchasing power, aiming to enhance efficiency and simplify financial transactions.
For example, Rp1,000 would become Rp1 after redenomination, but the prices of goods and the purchasing power of the public would remain unchanged.
With just RM251 in their wallets, Malaysians can cross into Indonesia and instantly become millionaires—at least in rupiah terms, thanks to the staggering currency conversion.
The regulation explains that the redenomination initiative seeks to strengthen economic efficiency, improve competitiveness, and maintain growth momentum.
It is also expected to stabilise the rupiah’s value, preserve purchasing power, and boost the currency’s credibility both domestically and internationally.
The move to eliminate zeros from the rupiah has been a long-standing government agenda, with previous administrations having considered implementing the policy.
In 2023, Bank Indonesia Governor Perry Warjiyo stated that the central bank supported the policy but emphasised that its implementation would need to be cautious, taking into account economic and political stability.
In 2017, then-Deputy Governor Mirza Adityaswara noted that the redenomination process could take up to 10 years, requiring public education efforts to avoid confusion about purchasing power.
The proposal to remove three zeros from the currency was last submitted to Parliament in 2013, but it was shelved at the time.
It remains unclear how many digits will be removed under the latest redenomination plan. – November 8, 2025