Re-denomination of Rupiah

05Aug10

This week, the news about Bank Indonesia’s plan to carry out a re-denomination of Indonesian Rupiah is all over the media. Some have shown reluctance, in fear of losing value of their money. This is going to be hard work for Bank Indonesia to educate people about this issue and to actually decide on really doing re-denomination of our currency itself. Many politicians will (or already have) try to interfere to make the current government look bad if re-denomination really takes place. Bank Indonesia should stand up for this and stick to their plan because we really need to re-denominate Rupiah right now. With current exchange rate of 1 USD = 9000 IDR, if re-denomination takes place, it will be 1 USD = 9 IDR. I’m no expert, but it sounds pretty ideal to me.