The Ministry of Finance and Bank Indonesia are preparing a Redenomination Bill that would simplify the rupiah by cutting three zeros off the back. Officials say it won’t affect people’s purchasing power, but what could that mean for the wider economy?
Four Key Urgencies
Prominent since 2013, the redenomination of the rupiah has officially been included in the Ministry of Finance’s Strategic Plan for 2025–2029 through the issuance of Minister of Finance Regulation No. 70 of 2025, enacted on November 3, 2025.
Within the regulation, four key urgencies are outlined for the drafting of the Redenomination Bill:
✅ Economic efficiency to be achieved through enhancing national competitiveness.
✅ Ensuring continuity in the development of the national economy.
✅ Maintaining a stable rupiah value as a reflection of preserving public purchasing power.
✅ Strengthening the credibility of the rupiah.
Minister of Finance Purbaya Yudhi Sadewa has set a target for the Redenomination Bill to be completed by 2027. However, full implementation will be handed over to Bank Indonesia (BI) as the monetary authority.
“The redenomination policy is entirely under the authority of BI as the monetary regulator. So let’s be clear, it’s not the Ministry of Finance that is pushing for its implementation,” Purbaya emphasized.
No Disruption to the Investment
Meanwhile, Donny Oskaria, Chief Operating Officer of the Indonesian Investment Management Agency (Badan Pengelola Investasi Danantara), guaranteed that the rupiah redenomination plan would not affect the investment climate in Indonesia.
“Oh, I think the government has certainly thought about it. There has certainly been an in-depth study, so there’s no need to worry,” Donny said in Jakarta on November 11, 2025.
Agreeing with Donny’s statement, Shaokai Fan, Head of Asia Pacific and Global Head of Central Banks at the World Gold Council/WGC, expressed a similar sentiment.
Shaokai believes the currency redenomination policy will have a secondary impact, leading to positive movement.
“There may be a secondary effect where investors will have more confidence in Indonesia, thus attracting more investment. Because (redenomination) could signal that Indonesia’s inflation is increasingly under control,” Shaokai said in Jakarta on November 12, 2025.
Prepare for Regulatory Shifts
While the Rupiah redenomination plan has been included in the Ministry of Finance’s 2025–2029 strategy, the exact timing of its implementation is still to be determined by Bank Indonesia as the monetary authority.
This uncertainty makes it even more crucial for foreign investors to have a trusted local partner who can anticipate regulatory changes and ensure smooth compliance.
Seven Stones Indonesia provides comprehensive services — from company incorporation and property transaction management to tax and accounting support, including monthly bookkeeping that will inevitably be affected by redenomination.
📩 Contact our legal team today to schedule a complimentary 30‑minute consultation and discover how our expertise in Indonesia’s regulatory business landscape can support your investment journey.