Indonesia Considering Rupiah Denomination 

Monday, 2 August 2010

Jakarta Post

Indonesia’s central bank is deliberating a potential Rupiah denomination in light of decreasing exchange rate valuations against the US dollar in recent years.

Bank Indonesia is considering the possibility of eliminating zero digits in the currency’s nominal value, as reported by kompas.com.

“The central bank is preparing several measures to make Rp 1 feasible,” new Bank Indonesia Governor Darmin Nasution said over the weekend.

The bank has not yet decided how many zero digits would be eliminated, but plans to consult with the House of Representatives before reaching a decision, Darmin said.

“We will publicize the plan by the end of this year,” Darmin said, adding that currency denomination processes generally take four to five years.  

The denomination plans will consider overall economic health, low inflation and price stability, Bank Indonesia deputy governor Budi Rochadi said.