At the moment, economic conditions are not conducive for it."Jakarta (ANTARA News) - Indonesias central bank governor Agus Martowardojo stated that a stable economy will be key to success of rupiah re-denomination with Rp1 thousand becoming Rp1 that the government has so far planned to carry out.
"We want to be sure that it will be successful but one of the key to its success is economic stability and good growth," he explained at a discussion with the media, here on Thursday.
Agus had stated in 2013 that the domestic economy was still facing correction in growth while the impact of global upheavals will still be felt until 2014.
Meanwhile, "stimulus (the Feds monetary stimulus) has been cut and the 2013 inflation at home has risen above the target," he pointed out.
Agus added that the countrys current account until the end of 2013 was predicted to suffer a deficit of 3.5 percent and rupiah depreciation will still pose a challenge for the countrys economy this year.
"To assure success the plan must not be implemented until the situation becomes favorable," he noted.
Bank Indonesia deputy governor Ronald Waas also shared Aguss view adding that the requirement for implementation of re-denomination was political as well as economic stability.
"At the moment, economic conditions are not conducive for it," he pointed out.
Ronald stated that the program still remained, adding that "the presidents order has been carried out. The House of Representatives have already set up a special committee for it and public discussions have also been done."
He added that the plan needs thorough preparations including the time including to familiarize with it.
"The preparation could take five to seven years. It will not only involve printing money and distributing it but also education and familiarization. Our country, being huge, familiarization must be ensured," he reiterated.
(Reporting by Citro Atmoko/H-YH/INE/KR-BSR/S012)
Editor: Priyambodo RH
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