"Whether or not the government implements the rupiah redenomination policy, it will not negatively affect the economy," Kalla said.Jakarta (ANTARA News) - The government`s policy on rupiah redenomination will not disturb the nation`s economy, according to former vice president Jusuf Kalla.
"Whether or not the government implements the rupiah redenomination policy, it will not negatively affect the economy," Kalla said after speaking at a workshop, entitled "Greeting the Indonesian Economy 2014", here on Wednesday.
"Currency redenomination efforts had been made by the government in 1965 but had met with failure. Therefore, such a policy should be made clear to the public before it is implemented this time," he stated.
"A redenomination policy makes sense, but the public must know how it all works," Kalla pointed out.
Meanwhile, Finance Minister Agus Martowardojo said the draft of the rupiah redenomination law, which suggests dropping three zeroes from the Indonesian currency, was now being finalized at the Ministry of Law and Human Rights.
He stated that the draft law would be submitted to the House of Representatives next year for approval.
Agus said the government would begin its public consultation efforts from December this year until April 2013.
"We need to hold public discussions before introducing this policy because most people still think that redenomination will reduce the exchange value of the rupiah. But the truth is, this policy will only simplify the nominal value of rupiah and will not diminish the currency`s economic value," Agus explained.
The rupiah redenomination plan was first proposed by Indonesia`s central bank, Bank Indonesia (BI), in 2010.
BI governor Darmin Nasution had said at the time that the redenomination plan was part of the government`s efforts "to comply with regional economic reforms, which are in line with ASEAN Economic Community targets for 2015".(*)
Editor: Heru Purwanto
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