Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, IGAP Trisnajaya
During the public hearing session at House of Representatives, Sunday (28/1), former Deputy Minister of Coordination and Economy Rizal Ramli expressed his concerns with redenomination of rupiah.
Even though the Government and Bank Indonesia (BI) have been discussing rupiah redenomination for some time and claiming that the plan will benefit Indonesian economy, Rizal said that neither BI nor the Government are able support their statements with solid arguments or with empirical data.
“It is unfortunate that the statements [from BI and the Government] regarding the benefits of redenomination are not supported with solid arguments,” said the former Deputy Minister.
Replacing old currency with new rupiah, Rizal said, will only result in inflation and decrease purchasing power of lower-middle class due to higher adjusted prices.
For example, if a pack of roasted peanuts now costs Rp 800, the price is likely to be adjusted to Rp 1 (Rp 1,000 in old currency) after redenomination. This means that the price would increase by Rp 200.
Rupiah redenomination will only bring benefit and comfort to Indonesia’s upper-middle class—which makes up only 0.5% of Indonesian population—as it makes carrying cash much easier, stated Rizal.
“How come [BI and the Government] introduce a policy that only benefits 0.5% of Indonesian population?” questioned Rizal.
He is further concerned that the new rupiah will support the practice of bribery. He explained that it will be more efficient to carry billions of rupiah for the purpose of bribing government officials.
The redenomination policy will only give a strong impression of the currency, while in reality, it is the stability of the currency that is important, not its strength.
Rizal noted that some countries, such as Japan and China, were successful in developing their economy and industry by maintaining weaker but stable currencies.
Rizal concluded that Bank Indonesia and the Government must immediately cancel redenomination.
To this end, as previously reportedby hukumonline, Governor of BI Darmin Nasution stated that the raised concerns will be addressed by a strong regulatory framework, proper oversight and enforcement, as well as community education and communication.
(jt/hot)
Fitri Novia Heriani, IGAP Trisnajaya
During the public hearing session at House of Representatives, Sunday (28/1), former Deputy Minister of Coordination and Economy Rizal Ramli expressed his concerns with redenomination of rupiah.
Even though the Government and Bank Indonesia (BI) have been discussing rupiah redenomination for some time and claiming that the plan will benefit Indonesian economy, Rizal said that neither BI nor the Government are able support their statements with solid arguments or with empirical data.
“It is unfortunate that the statements [from BI and the Government] regarding the benefits of redenomination are not supported with solid arguments,” said the former Deputy Minister.
Replacing old currency with new rupiah, Rizal said, will only result in inflation and decrease purchasing power of lower-middle class due to higher adjusted prices.
For example, if a pack of roasted peanuts now costs Rp 800, the price is likely to be adjusted to Rp 1 (Rp 1,000 in old currency) after redenomination. This means that the price would increase by Rp 200.
Rupiah redenomination will only bring benefit and comfort to Indonesia’s upper-middle class—which makes up only 0.5% of Indonesian population—as it makes carrying cash much easier, stated Rizal.
“How come [BI and the Government] introduce a policy that only benefits 0.5% of Indonesian population?” questioned Rizal.
He is further concerned that the new rupiah will support the practice of bribery. He explained that it will be more efficient to carry billions of rupiah for the purpose of bribing government officials.
The redenomination policy will only give a strong impression of the currency, while in reality, it is the stability of the currency that is important, not its strength.
Rizal noted that some countries, such as Japan and China, were successful in developing their economy and industry by maintaining weaker but stable currencies.
Rizal concluded that Bank Indonesia and the Government must immediately cancel redenomination.
To this end, as previously reportedby hukumonline, Governor of BI Darmin Nasution stated that the raised concerns will be addressed by a strong regulatory framework, proper oversight and enforcement, as well as community education and communication.
(jt/hot)