News - Redenominasi Currency Rupiah

Once approved, the central bank will continue to socialize openly to the public.
Marchelo
TWO days after its adoption as the Governor of Bank Indonesia (BI) through the Plenary Session of Parliament, directly Nasution suggested programs that could trigger a scene. He proposes done redenominasi fractional currency of rupiah. That was done so that the rupiah currency does not have a large number of par.

Redenominasi ie fractional reduction in value without reducing the value of money. Roughly, the number zero in a fraction will be reduced. For example, if deducted three zeros,
Rp 1 million will be Rp 1.000.

Nasution said the new proposal is merely a discourse that will be submitted to the government through the President and Parliament. Once approved, the central bank will continue to socialize openly to the public. "We earned this year can be submitted to the government / Nasution said.

BI Deputy Governor Budi Rochadi add-nomination Rede fractional rupiah currency which does not require a short time. It takes about three years-four years. That's one outside the period of transition.

According to Budi, Turkey has never done before redenominasi fractional currency becomes smaller. This was done because the floating of its currency was too big.

As it is known that the largest Indonesian banknotes today, namely RplOO thousand. It is the world's second largest fragment. The first largest is the currency of Vietnam, ie 500 thousand dong. Zimbabwe had even scored 100 billion Zimbabwean dollars in the currency satulembar.

Only, added Budi, to simplify the unit can do it requires a number of requirements. There are at least three absolute requirements are met, namely a stable economy, low inflation and stable, and the guarantee price stability. "The most difficult to do quickly and easily is the socialization of the entire people of Indonesia that reaches hundreds of millions of souls."

Change of name

Meanwhile, an economist at Bank
Mandiri Martin Panggabean redenominasi proposed implementation should be done by changing the name of the rupiah. This was done so that the public is not confused with the currency redenominasi. "We must change the name of the currency. Because if not people will be confused, there would be monetary misperception."

Martin pointed out, if people want to buy one hectare of land worth Rpl.000, society might pay for it with money Rpl.000 long. That will create confusion in society.

Martin worried redenominasi currency would lead to social instability and political if not accompanied by changes in currency name. He cited the incidence of cutting the value of currency or saneringyang occurred in 1965. At that time people thought the money he had diminished its value. When in fact only occur denomination.