Appearance of a Rp120 Billion Luxury House, the Bathroom Will Astonish You
In South Jakarta, there is a house with a price of up to Rp120 billion.
Dream - The discussion of redenomination of the rupiah from Rp1,000 to Rp1 has resurfaced. Bank Indonesia (BI) affirms that the plan to simplify the nominal value of the rupiah has been prepared for a long time, but its implementation has to wait for the right moment.
Bank Indonesia Governor Perry Warjiyo himself stated that the preparation plan for the redenomination of the rupiah has even reached the stage of designing new currency and its operational stage.
"We have prepared the redenomination for a long time. The issues of design and its stages, both operationally and how the stages will be," said Perry, as quoted from Liputan6.com, Tuesday, June 27, 2023.
In addition to making the rupiah denomination simpler without reducing its value, redenomination is believed to simplify the writing of the value of goods and services, followed by simplifying the writing of the means of payment (money).
Furthermore, the goal of redenomination is to simplify the accounting system in the payment system without causing negative impacts on the economy.
Bank Indonesia had previously presented the redenomination plan to the DPR (Indonesian Parliament) a few years ago through the Redenomination Bill.
Referring to the provisions in the Bill, the implementation of redenomination will require a minimum of seven years, including two years of preparation. The preparation stages will be carried out through socialization to the public and other economic actors.
The following five years will be used as a transition period before Indonesia eventually withdraws the old currency from circulation.
Once everyone is accustomed to it, Bank Indonesia will proceed with the redenomination process by printing new money with a new design and new numbers.
There are three factors that influence Bank Indonesia's decision to implement rupiah redenomination.
Firstly, Perry stated that Indonesia's macroeconomic conditions have improved and recovered, but there is still potential spillover impact from the global economy that is still uncertain.
Global economic uncertainty has increased again with the tendency of slowing growth and higher monetary interest rates in developed countries.
Global economic growth is predicted to be around 2.7 percent in 2023, with the risk of slowdown especially in the United States and China.
Monetary policies are still tight in Europe, while in Japan they are still loose. In China, economic growth is also not as strong as predicted amidst low inflation, which encourages monetary policy easing.
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Secondly, Perry mentioned that the monetary conditions and financial system stability in Indonesia are already stable, but Indonesia is still overshadowed by global uncertainties.
Thirdly, the social and political conditions are needed for redenomination to be conducted, which require a conducive, positive, and strong social and political environment.
"The government is more aware of the social and political conditions," he added.
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