"We have now achieved good national economic development but it is not yet supported by an efficient denomination of the rupiah currency," the minister said.Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said that the rupiah denomination had become inefficient now so that it needed simplification by having several digits of its banknote nominal value cut off.
"We have now achieved good national economic development but it is not yet supported by an efficient denomination of the rupiah currency," the minister said in public consultation on the change of the rupiah currency value on Wednesday.
He said that money with two many digits in its denominations had the potential to create inefficiency and wastefulness in accountancy reports and in the use of memory capacity of the computer system.
"In the non-cash payment system, the too-many digits could cause a transaction problem. The problem can arise as transactions value exceed the tolerated number of infrastructure digits in the payment and booking systems," he said.
For this, he said, Indonesia needed to redenominate its currency because it could also increase confidence on the rupiah value, make the payment system easy and reflect equal credibility to advanced countries.
"With redenomination, the value of the rupiah currency would increase and could be equalized to those of advanced nations. After all, at present, Indonesia is showing its economic conditions which are conducive to redenominating the rupiah currency," he said.(*)
Editor: Heru Purwanto
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