Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, IGAP Trisnajaya
As the draft of the new Bill on Rupiah Denomination is about to be submitted to the House of Representatives (House) in 2013, a few suggest that passing of the law should be postponed.
The rupiah redenomination has been long planned by the Government and it was first proposed by the Governor of Bank Indonesia in 2010. However, it was rejected later that year by the House.
The redenomination will result in three zeroes dropped from rupiah currency. Changing, for example, Rp 100,000 to Rp 100; while the the value of the currency will be changed, but the trade value will not.
Minister of Finance Agus Martowardojo explained that the Government has planned to inform the public about rupiah redenomination starting December 2012 until April 2013.
On the topic of redenomination, lecturer at Faculty of Economics of University of Indonesia Telisa Aulia Falianty stated that the change will raise efficiency in dealing with rupiah currency.
However, she asserted that it is a sensitive issue and therefore the legal basis for rupiah redenomination must be clear and solid.
“The legal basis must be clear, otherwise it will be chaotic,” she stated to hukumonline, Tuesday (18/12).
The fear of chaotic impact due to redenomination comes from 1965, when Indonesia slashed the currency value and also changed the trade value. The policy, known as sanering, applied in times of hyperinflation and political instability. Sanering was not well-explained to the public and led to a chaotic confusion amongst Indonesian people.
As a lesson, rupiah denomination should not be implemented too fast, especially considering the upcoming presidential election in 2014.
Telisa confirmed that redenomination during elections can be used to claim that it is the same as monetary reformation, which is known to reduce the trade value of a currency.
She continued to state that the Government must prepare a mechanism for the rupiah redenomination process by informing the general public and controlling the circulation of two different currencies during the transition phase.
According to Telisa, dishonesty in trade during this phase can cause inflation. “For example, a price of a certain good is Rp. 60,000. After redenomination it becomes Rp. 60. It is feared that merchants will sell that good for Rp. 65. This is dangerous,” she stated.
Economy expert Destry Damayanti concluded that rupiah redenomination must occur in stable global and national economic conditions. If global economics are unstable, then rupiah redenomination should not be implemented.
(jt)
Fitri Novia Heriani, IGAP Trisnajaya
As the draft of the new Bill on Rupiah Denomination is about to be submitted to the House of Representatives (House) in 2013, a few suggest that passing of the law should be postponed.
The rupiah redenomination has been long planned by the Government and it was first proposed by the Governor of Bank Indonesia in 2010. However, it was rejected later that year by the House.
The redenomination will result in three zeroes dropped from rupiah currency. Changing, for example, Rp 100,000 to Rp 100; while the the value of the currency will be changed, but the trade value will not.
Minister of Finance Agus Martowardojo explained that the Government has planned to inform the public about rupiah redenomination starting December 2012 until April 2013.
On the topic of redenomination, lecturer at Faculty of Economics of University of Indonesia Telisa Aulia Falianty stated that the change will raise efficiency in dealing with rupiah currency.
However, she asserted that it is a sensitive issue and therefore the legal basis for rupiah redenomination must be clear and solid.
“The legal basis must be clear, otherwise it will be chaotic,” she stated to hukumonline, Tuesday (18/12).
The fear of chaotic impact due to redenomination comes from 1965, when Indonesia slashed the currency value and also changed the trade value. The policy, known as sanering, applied in times of hyperinflation and political instability. Sanering was not well-explained to the public and led to a chaotic confusion amongst Indonesian people.
As a lesson, rupiah denomination should not be implemented too fast, especially considering the upcoming presidential election in 2014.
Telisa confirmed that redenomination during elections can be used to claim that it is the same as monetary reformation, which is known to reduce the trade value of a currency.
She continued to state that the Government must prepare a mechanism for the rupiah redenomination process by informing the general public and controlling the circulation of two different currencies during the transition phase.
According to Telisa, dishonesty in trade during this phase can cause inflation. “For example, a price of a certain good is Rp. 60,000. After redenomination it becomes Rp. 60. It is feared that merchants will sell that good for Rp. 65. This is dangerous,” she stated.
Economy expert Destry Damayanti concluded that rupiah redenomination must occur in stable global and national economic conditions. If global economics are unstable, then rupiah redenomination should not be implemented.
(jt)