Indonesia will conduct Redenomination

JAKARTA - Bank Indonesia (BI) asserted that Indonesia had never done before redenomination. It's never been done in Indonesia in 1966.

"We've never done redenomination 1966. But the current environment is high inflation, so that his luck failed," said BI Deputy Governor Budi Rochadi after Press Conference Press Room BI Redenomination in Jakarta, Tuesday (03/07/2010).

At that BI did redenomination by simplifying the amount of Rp1.000 to Rp1. However, when inflation was high, so that when it fails redenomination policy.

In 1966, BI is also well done snaring. I.e. cutting money in an unhealthy condition of the economy, where the cut is only the value of money.

"So that Indonesia had done only once and only once redenomination snaring. Currently, we are proposing discourse redenomination again because inflation was under control," he added.

However, continued Budi, because this policy decision is a political policy of the regulators can not propose this policy alone.

The draft plan will be proposed this discourse of BI in this month to the president. If smooth, then design will be submitted to Parliament.

The design included a large number of zeros simplification which will be deducted.

Actually, this has been done redenomination discourse BI since 5-6 years ago. However, continued Budi, this discourse was intensively discussed the new back in the last two years.

"In any case (this redenomination discourse again) not to fail," he asserted.

However, it also can not do anything because of this policy involves a political decision earlier. BI, continued Budi, can only put forward the idea, surveys or observations based on what has been done in other countries. If this decision is rejected, then this plan would disappear just like that. - via -