However, if two regulations are completely discussed, we can recommend the regulation of redenomination (this year)."
Jakarta (ANTARA News) - Vice President M. Jusuf Kalla has expressed support to the Indonesia central banks (BIs) plan to conduct a redenomination of the countrys rupiah, which will simplify the financing system.

Speaking after opening the Indonesia Stock Exchange trading here on Tuesday, Kalla stated that redenomination will also have a psychological impact on the users regarding the intrinsic value of the currency.

"For instance, we usually feel surprised that after coming back (to Indonesia) from overseas, we need to pay a hundred thousand (rupiah) only for food, while in another country, it was only ten dollars," the vice president noted.

In addition, the fewer zeros after the unit numbers will simplify the financial accounting and bookkeeping process, particularly in large-scale transactions, such as in the capital market.

While extending his support to the redenomination of the rupiah, Kalla also highlighted the importance of gradually applying the process to prevent panic among the public over the abrupt change.

Regarding the progress in rupiah redenomination, BI Governor Agus Martowardojo revealed that its draft of the legislation had been proposed to the House of Representatives and is currently seventh in queue as a draft of law to be deliberated in parliament.

"As it ranks in the seventh (position), the regulation of redenomination cannot be included in the 2017 National Legislation Program. However, if two regulations are completely discussed, we can recommend the regulation of redenomination (this year)," Martowardojo noted.

The idea of redenomination had been proposed by BI since 2015, but it could not be implemented, while the global economic situation was unstable, mainly due to the tapering in the US.

"Currently, the situation is more conducive. Hence, we urge the representatives to immediately discuss the regulation if there is an opportunity," Martowardojo affirmed.

(Reported by Azizah Fitriyanti/Edited and Translated by Yashinta Difa/INE/KR-BSR/O001)

Editor: Priyambodo RH
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