Draft Bill on the Redenomination of the Rupiah Currency

In order to improve economic efficiency and create smoother commercial transactions, Bank Indonesia (“BI”) is hoping that the government and House of Representatives will consider deliberating the Draft Bill on Redenomination of Rupiah (“Draft Bill”). The Draft Bill is aiming to simplify the use of the rupiah currency without changing its value or foreign-exchange rate through the removal of the currency’s final three digits.
 
The Draft Bill encompasses several provisions which pertain to the redenomination of the existing rupiah (“Preexisting Rupiah”)[1] to a new value (“New Rupiah”), which will see the currency’s decimal point shifting three digits leftwards. These provisions address the following matters: