REPUBLIKA.CO.ID, JAKARTA - Started on Wednesday, Ministry of Finance and Bank Indonesia (BI) start to intrroduce  the IDR redomination, which will drop three zeroes from the Indonesian currency. Public were assured that redenomination was different from sanering, which not only cut the nominal value but also the exchange value of the currency.

Minister of Finance, Agus Martowardojo, said the redenomination must be implemented cautiously to ensure that it would not cause misunderstandings. "Redenomination will not diminish the economic value of the currency," he said on Wednesday.

He exampled that after redenomination, 50,000 IDR would become 50 IDR without decreasing buying power. He explained that with redenomination, IDR currency's economic value would be better represented compared to other foreign currencies.

"The current currency has too any digits. It is inefficient for data input," he said.

Based on Laws No. 7/2011 on Currency, government and BI have drafted a bill on redenomination. The draft has been proposed to the House of Representatives to be included in National Legislation Program 2013.

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