REPUBLIKA.CO.ID, JAKARTA - Deputy Chairman of Indonesian Chamber of Commerce and Industry (Kadin), Natsir Mansyur, said on Monday that the redenomination was sanering in disguise. Ministry of Finance and Bank Indonesia (BI) plan to implement redenomination eliminating three zeros from IDR, in Indonesia.

"Redenomination must be conducted gradually. Started by eliminating one digit, two digits and then three digits," Mansyur said. Even though redomination aims to simplify transaction, he warned government that redenomination would bring some consequences.

Introducing redenomination

Started last Wednesday, Ministry of Finance and Bank Indonesia (BI) introduced  the IDR redomination. Public were assured that redenomination was different from sanering. The later not only cut the nominal value but also the exchange value of the currency.

Redenomination means that 50,000 IDR becomes 50 IDR. Minister of Finance, Agus Martowardojo, argued that redenomination would help Indonesian currency to be better represented among other foreign currencies.

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