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VIRAL INDONESIAN RUPIAH 1 ( ONE ) DENOMINATIONS. IS IT A REVALUATION OR REDENOMINATION?


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                      Viral Rp1 Denominations, Are New Currency Denominations Really New?

 

 

81f60428b1706462945eb611a8cbe5a2

 

 

Ichsan Suhendra, Isra Berlian
Mon, 10 May 2021 10.12 AM · 2 min read

 

 

VIVA - In the past few days, the 1.0 or IDR denomination has gone viral on TikTok. This is after a video of a TikTok user asking netizens about giving a 1.0 or Rp1 denomination for his relative's holiday allowance (THR).

The tradition of distributing holiday allowances (THR) has become part of Indonesian society. Not only the company, a number of people have also prepared THR money for their relatives.

But what if you were given THR in 1.0 or Rp1? This is what makes TikTok users @PuspoTv ask netizens about it.

"Giving THR using denominations is funny, isn't it ?," wrote the account in the video.

From the video uploaded by the user, the 1.0 or Rp1 bill has a number of color combinations ranging from red, orange to blue. The denominations featured a female pendet dancer, complete with an explanation of the pendet dance.

The 1.0 or Rp1 bill also had the words The Beauty of Indonesia and Perum Peruri Specimen written on it. Not only that, on the other hand the denominations also featured traditional boats, turtles and fish as well as a mini map of Indonesia complete with a compass.

"Hey, someone has yet," wrote the video.

Suddenly the upload reaped thousands of comments from netizens and had more than 149 thousand likes.

"This is not new money, perum peruri specimen 1.0 trial money for 2016 and not for the public, is sold in online stores by collectors at high prices," commented netizens.

"Is this money especially for the 75k that hasn't arrived at the exchange," another comment

"I just yesterday got 75 thousand money, I'm happy to be invited back by my ex. now there is new money again," said another.

"I have never held 75,000 of money either, this is something new again," said another

"Quickly save your 100k money, show it to your children in the future" look at my father first, the richest person in our city "," said another.

 

link https://id.berita.yahoo.com/viral-uang-pecahan-rp1-benarkah-031228862.html

 

 

i just found this article. i just translate using goggle translation. this is kind of interesting , but i am still confused. is indonesian rupiah already revaluing or redenominating? is this redenomination or revaluation? because it showed the picture of 1 indonesian rupiah. are indonesian rupiah holders already rich yet? is it the best time to exchange rupiah for dollars? what do you think folks?

 

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            Again, BI Affirms Redenomination Does Not Change the Purchasing Power of the Rupiah

 

 

Husen Miftahudin • February 9, 2021, 09:55

 

Jakarta: Bank Indonesia (BI) stated that the central bank and government plan to simplify the currency value or redenomination is still ongoing. However, this plan is heavily influenced and determined by social, political and economic conditions.
 
"Although redenomination will not actually change the purchasing power of the money we have, these social conditions will determine public acceptance," said Head of the BI Communication Department Erwin Haryono to Medcom.id, quoted on Tuesday, February 9, 2021.
 
According to Erwin, a play or incitement to the rupiah redenomination, such as what happened in a video uploaded by a number of social media accounts and going viral, could occur on a wide scale. These conditions can also affect the implementation of redenomination.

"Stable social, political and economic conditions are very important in the implementation of redenomination. Experience in many countries shows this," he explained.
 
Regarding the video featuring banknotes with a nominal value of Rp. 100 with the picture of President Joko Widodo (Jokowi), Erwin confirmed that this was just a prank. Bank Indonesia will investigate the video showing the rupiah currency to prevent misperceptions regarding the circulation of the money.
 
"Not from BI, but we monitor them. It looks like the pranksters in Tiktok continue to enter Instagram and also FB (Facebook)," said Erwin.
 
However, he acknowledged that the video creators and accounts distributing it had made an apology. Regarding this, Erwin also asked that all uploads be removed immediately. "We want to invite the public to be careful about this matter. After all, the rupiah is a symbol of the sovereignty of the Republic of Indonesia," said Erwin.
 
The Ministry of Finance and Bank Indonesia have discussed redenomination against the rupiah. The plan is contained in the Minister of Finance Regulation (PMK) Number 77 / PMK.01 / 2020 concerning the Ministry of Finance's Strategic Plan 2020-2024. However, the plan is not final and is still being discussed in the DPR.

 

link https://www.medcom.id/ekonomi/keuangan/ob33wa0b-lagi-bi-tegaskan-redenominasi-tidak-mengubah-daya-beli-rupiah

 

 

I translate using goggle translation. from this article, it seems that they want to redenominate the indonesian rupiah. so do all indonesian rupiah holders make a profit when they exchange rupiah to dollars?

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6 Rupiah will no longer sell in 2021, will be exchanged at the latest on December 28!

 

 

Achmad Dwi Afriyadi - detikFinance
Sunday, 20 Dec 2020 12:03 WIB

 

Photo: Rupiah money (doc.BI)

 

Uang Rupiah

 

Jakarta -
The six rupiah denominations issued in 1968, 1975 and 1977 would no longer sell in the next year. For people who have this money there is still an opportunity to exchange it.
But don't forget, there is a time limit and exchange schedule. Bank Indonesia (BI) opens exchange services at the nearest BI office exchange counters throughout Indonesia until the deadline December 28, 2020.
Then, the rupiah currency exchange service is from Monday to Friday at 08.00 to 11.30 local time. However, there are several holidays leading up to Christmas and the end of 2020.

"The rupiah currency exchange that has been revoked and withdrawn from circulation is open every Monday-Friday, 08.00-11.30 local time, except on 24-25 December 2020 according to the BI operational schedule which applies ahead of Christmas and the end of 2020," said the Director. BI Communication Department Executive Erwin Haryono in a press release as written, Sunday (20/12/2020).

Six banknotes that have been revoked and withdrawn from circulation as specified in the Decree of the Board of Directors of Bank Indonesia No.20 / 54 / KEP / DIR dated March 4, 1988, and are still eligible to be exchanged until the deadline.
"BI routinely revokes and withdraws Rupiah currency. This is done with the consideration of, among other things, the circulation period of the money, the existence of new money issuances with the development of security features on banknotes," he said.
The following is a list of rupiah currency that will no longer be sold at the end of 2020:
IDR 100 1968 Emission (Front image: General TNI (Posthumous) Raden Soedirman)
IDR 500 Emission Year 1968 (Front image: General TNI (Posthumous) Raden Soedirman)
Rp. 1.000 Emission Year 1975 (Front image: Pangeran Diponegoro)
IDR 5,000 Emission Year 1975 (Cover image: Fisherman)
Rp 100 1977 Emissions (Facing image: One-horned rhino)
Rp. 500 Issued in 1977 (Facing picture: Rachmi Hatta with Vanda Orchids).

 

link https://finance.detik.com/moneter/d-5302434/6-uang-rupiah-tak-lagi-laku-2021-tukar-paling-telat-28-desember

 

 

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                  Rp100 Viral Redenomination Currency with a Picture of Jokowi, Here's the Appearance

 

 

Rina Anggraeni, Journalist · Monday 08 February 2021 10:56 WIB

 

 

https: img.okezone.com content 2021 02 08 320 2358378 viral-uang-redenominasi-rp100-bergambar-jokowi-begini-penampakannya-JzbbeJOQM7.png

 

JAKARTA - Viral Rp100 redenomination of President Joko Widodo (Jokowi) has been circulating on social media. This has shocked the virtual world.
This was shared by the Instagram account @ jakarta.keras. In the Instagram account posting, there is a video showing Rupiah currency with a picture of President Jokowi in Rp100 denominations.
"He said Indonesia wants Redenomination," reads the video, showing the redenomination of the Rp. 100 Rupiah denomination.

 

Redenominasi Rupiah


"So the nominal currency is going to be twisted, like the dollar," he wrote.

In addition, the video contains the denominations of Rp1,000 = Rp1, Rp50,000 = Rp50 and Rp100,000 = Rp100.
"Do you agree or not, Sobi?" write the account caption.


In the video that was circulating, it recorded rupiah banknotes with a nominal value of Rp. The banknotes were red in color with the large inscription of Bank Indonesia along with the logo, complete with a serial number.
On one side of the money is a photo of President Joko Widodo (Jokowi) 's half body. While on the other side, it depicts the State Palace.

 

link :  https://economy.okezone.com/read/2021/02/08/320/2358378/viral-uang-redenominasi-rp100-bergambar-jokowi-begini-penampakannya?page=1

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                                  If So, Here Are The New Rupiah Redenominations of Rp1000 To Rp.1

 

 

NEWS - Cantika Adinda Putri, CNBC Indonesia

09 July 2020 09:40
 

INFOGRAFIS, Redenominasi Mata Uang Rupiah

 


Jakarta, CNBC Indonesia - Minister of Finance Sri Mulyani decided on the Redenomination Bill to be included in the Ministry of Finance's strategic plan for 2020-2024. This redenomination is then contained in the Minister of Finance Regulation (PMK) Number 77 / PMK.01 / 2020.
The Ministry of Finance noted that there are at least two reasons why the rupiah currency value simplification must be carried out. First, to create efficiency in the form of accelerated transaction time, reduced risk of human error, and efficiency in quoting prices for goods / services due to the simple number of digits in rupiah.
Second, to simplify the transaction, accounting and reporting system for the State Budget because there are not many or fewer rupiah digits.

In 2017, this was the first time that the Ministry of Finance and Bank Indonesia (BI) submitted a Currency Redenomination Bill.
The Minister of Finance at that time, who was also still Sri Mulyani, together with the Governor of Bank Indonesia (2013-2018 period) Agus DW Martowardojo submitted a direct application for the Currency Redemonization Bill to President Joko Widodo (Jokowi) at the Merdeka Palace, Jakarta.
It was reported that President Jokowi's response at that time was welcoming and ready to be discussed by legislators or in this case the House of Representatives (DPR).
Unfortunately, from 2018 to 2020, the Redenomination Bill was not included in the national legislation program (prolegnas).
The experience of other countries shows that the success of redenomination demands macroeconomic stability, controlled inflation, currency exchange rates, and fiscal conditions.
Economist at the Center of Reform on Economics (CORE) Indonesia, Piter Abdullah, views that the redenomination of the rupiah can indeed increase the dignity of the rupiah, which now seems to be of no value compared to global currencies.
One of the requirements for currency redenomination is stable and low inflation. According to Piter, Indonesia has met this requirement in the last 5 years. Meanwhile, the implementation of redenomination requires a long process.
According to Piter, if the government wants to redenominate the rupiah, it must first obtain an agreement. Even until the redenomination is actually implemented, it will take 4-5 years.
"The discussion must start as soon as possible so that it can be agreed upon in the form of a law. If there is a law, the redenomination stage is still long. This process will take around 4-5 years," Piter explained to CNBC Indonesia, Tuesday (7/7 / 2020).
This change in the rupiah price has been fully explained in a study by Bank Indonesia (BI). Redenomination is not sanering or cutting people's purchasing power through cutting the value of money.
Redenomination is usually carried out in a stable economic condition and leads to a healthier direction. Meanwhile, sanering is cutting money in an unhealthy economic condition, where only the value of money is cut.
In redenomination, both the value of money and goods, only a few zeros are removed. Thus, redenomination will simplify writing the value of goods and services followed by simplifying writing of payment instruments (money).
Furthermore, this will simplify the accounting system in the payment system without causing a negative impact on the economy.
Here is the rendition:

 

INFOGRAFIS, Redenominasi Mata Uang Rupiah

 

 

For information, in 2010, BI actually had already planned five stages of the implementation of the rupiah redenomination. In the first phase, namely in 2010, BI conducted a comparative study on redenomination in several countries.

The second stage, to be precise in 2011-2012 is the socialization period. The third stage (2013-2015) is a transitional period when there are two quotations for the mention of nominal money.

Then in the fourth stage, or to be precise 2016-2018, BI will ensure that the old money that has not been deducted from zero will actually run out with a withdrawal limit in 2018.


In 2019-2020, which is the fifth stage as the final stage, the new information in the new printed bills will be removed. The community is ready to make payments with the redenominated money.

 

link https://www.cnbcindonesia.com/news/20200709092128-4-171327/kalau-jadi-ini-dia-rupiah-baru-redenominasi-rp1000-jadi-rp-1

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2 hours ago, 3 bucks new rv rate said:

For information, in 2010, BI actually had already planned five stages of the implementation of the rupiah redenomination. In the first phase, namely in 2010, BI conducted a comparative study on redenomination in several countries.

The second stage, to be precise in 2011-2012 is the socialization period. The third stage (2013-2015) is a transitional period when there are two quotations for the mention of nominal money.

Then in the fourth stage, or to be precise 2016-2018, BI will ensure that the old money that has not been deducted from zero will actually run out with a withdrawal limit in 2018.


In 2019-2020, which is the fifth stage as the final stage, the new information in the new printed bills will be removed. The community is ready to make payments with the redenominated money.

Wouw, i didn't know that it takes 10 years to redenominate one's currency from the beginning ( first stage ) until final stage , like indonesian rupiah. I just wonder how long does it take for iqd to revalue one day from the beginning until final stage? 

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22 hours ago, 3 bucks new rv rate said:

                                 

INFOGRAFIS, Redenominasi Mata Uang Rupiah

INFOGRAFIS, Redenominasi Mata Uang Rupiah

 

wouw. does that mean they have already printed the new lower denoms of 20 , 50, 100 before , but they haven't released them to the publics yet.  just wonder how many people here have already invested in this exotic currency?

pokerplayer, have you already invested in this exotic currency?

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                                         Viral Rupiah 1.0, Peruri Tepis The Issue of Redenomination

 


Sylke Febrina Laucereno - detikFinance
Saturday, 15 May 2021 13:15 WIB

 

Uang 1.0 Peruri

 

Jakarta -
A video showing a sheet of paper similar to rupiah currency went viral on TikTok. In the video there is a sheet with the number 1.0 and many comments saying that it is the proceeds of redenomination.

However, Perum Peruri dismissed the issue. Peruri said that the sheet was only a House Note or sample money which was indeed issued as a promotional tool.

For example, a promotion for the company's ability to print banknote security features. Peruri Head of Corporate Secretary Adi Sunardi said that money printing companies commonly use this to demonstrate the company's maximum competence and capability.

This House Note sheet is used for promotions to clients of money printing companies both at home and abroad. "Now our clients (Peruri) are printing banknotes for Peru and Nepal," he told detikcom, Monday (10/5/2021).
He revealed, House Noteini is also often brought to conferences that are attended by many money printing companies in the world. House Note is specimen currency that cannot be used as a legal means of payment because it does not have the characteristics of rupiah currency as stipulated in the Currency Law.
Adi explained that the 1.0 specimen was printed in 2015. Meanwhile, currently Peruri already has 3.0 in accordance with the development of security features that Peruri is able to do. "Indeed, for certain periods, Peruri always made the House Note," he explained.

He said the specimens were used as a marketing tool to promote the company's ability to print security features.

He mentioned that the House Note is a specimen that cannot be used as a legal means of payment, because it does not have the characteristics of the rupiah as stipulated in the Currency Law.
"So it is not true that it is an example of redenomination," he added.

 

link :  https://finance.detik.com/moneter/d-5570177/viral-rupiah-10-peruri-tepis-isu-redenominasi

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                                     DPR: Redenomination of Rupiah is not a Priority to be Discussed in 2021


Reporter:
Fajar Pebrianto
Editor:
Rr. Ariyani Yakti Widyastuti
Wednesday, 19 August 2020 18:26 WIB

 

Petugas money changer menghitung mata uang dolar. Rupiah semakin tertekan terhadap nilai tukar dolar Amerika Serikat, di level Rp14.060 per Dolar AS. Jakarta, 25 Agustus 2015. TEMPO/Subekti

 

 

 

TEMPO.CO, Jakarta - Chairman of the House of Representatives' Finance Commission Dito Ganinduto confirmed that so far there has been no draft Bill or Bill on Changing the Rupiah Price (RUU Redenomination) that has been submitted to the commission. In addition, there has been no discussion at all with the government regarding this bill.
Apart from that, Dito said that this bill was not one of the ones we planned to discuss. "Not included in the 2021 priority," said Dito when contacted in Jakarta, Wednesday, August 19, 2020.
The rupiah redenomination plan is actually not new, but has been running since 2013. Through this policy, the government wants to simplify it by reducing the number 0 in rupiah, for example from Rp. 1,000 to Rp. 1.
In 2013, the DPR has formed a special committee or special committee to discuss it. However, until the end of the 2014 term, there was no clarity regarding the draft proposed by the government.
In 2017, BI has also submitted academic studies to the President's Office. In addition, Agus also said that discussions were held with the DPR. "Academic studies and the draft Redenomination Bill are ready," said Agus at the BI Building, Jakarta, Friday, November 17, 2017.
Yesterday, Deputy Governor of BI Rosmaya said that the rupiah redenomination plan is continuing. The plan is currently being reviewed by a special team that monitors developments in the economic situation.
"Regarding redenomination, there is a goal of how to make writing in digits more efficient. Of course we will apply it when the economic conditions are right," said Rosmaya in a virtual press conference, Tuesday, August 18, 2020.
Meanwhile, Deputy for Macroeconomics and Finance, Coordinating Ministry for Economic Affairs Iskandar Simorangkit said that this bill has been included in the National Legislation Program (2020-2024).
Unlike Dito, Iskandar said this bill was a priority to be discussed by the DPR this year. "It depends on the DPR now," he said.

 

link  :  https://bisnis.tempo.co/read/1377482/dpr-redenominasi-rupiah-tidak-prioritas-dibahas-di-2021/full&view=ok

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                           Launching Rp. 75,000 in Currency, BI Affirms Not a Sign of Redenomination

 


Reporter:
Francisca Christy Rosana
Editor:
Dewi Rina Cahyani
Tuesday, 18 August 2020 13:14 WIB

 

 

Ananda Saubaki, siswi kelas 2 SDN Naikoten I, Kota Kupang, NTT, merupakan salah satu anak yang termasuk dalam gambar anak-anak dengan balutan pakaian adat yang menghiasi uang pecahan Rp75 ribu yang diluncurkan guna memperingati HUT RI ke-75. Ia adalah anak di urutan keempat dari kanan. Istimewa

 

 

TEMPO.CO, Jakarta - Bank Indonesia has confirmed that the design of a special commemorative bill or UPK of Rp. 75 thousand which features the number 75 is not a redenomination signal. Deputy Governor of Bank Indonesia Rosmaya Hadi said this figure was related to the age of Indonesia's independence, which has entered its 75th year.
"This figure is emphasized for Indonesia's birthday. It is not because the 75 is large and the three zeros are missing," said Rosmaya in a virtual press conference, Tuesday, August 18, 2020.
According to Rosmaya, the issuance of this special money had nothing to do with currency redenomination or simplification. This is because Rp 75 thousand is a Bank Indonesia program in 2020 which is intended to commemorate independence.
In addition, the launch of this special warning money is not related to the plan to issue new money to tackle the Covid-19 crisis. "Because this money can only be obtained when people exchange their money," said Rosmaya.
Furthermore, Rosmaya explained that Bank Indonesia often launches special money during certain moments such as the Republic of Indonesia's Independence Day. To date, the central bank has released ten UPKs and four of them were issued to commemorate Indonesia's 25th, 45th, 50th, and 75th Anniversary.
Regarding redenomination, Rosmaya said the plan would be implemented when the economy was in the right condition. "Regarding redenomination, there is one more team that continues to follow, there are more steps. So these (redenomination and launching of Rp. 75 thousand) have different goals," he said.
A special commemoration of IDR 75 thousand was launched on August 17, 2020 as a form of celebration of Indonesia's 75th independence. This money can be used as a means of transactions that have an exchange rate. Bank Indonesia has provided 75 million shares and the number will not be added again even though public interest is high.

 

link  :  https://bisnis.tempo.co/read/1376995/luncurkan-uang-rp-75-ribu-bi-tegaskan-bukan-sinyal-redenominasi/full&view=ok

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                                            What is the viral redenomination with Jokowi's image?

 


Trio Hamdani - detikFinance
Monday, 08 Feb 2021 11:47 WIB

 

Jakarta -
The virtual universe was shocked by the emergence of new rupiah currency. On one side of the money is a half-body image of President Joko Widodo (Jokowi), on the other hand, a picture of the State Palace. The new money was recorded with a redenomination narrative.
Bank Indonesia (BI) emphasized that so far it has not launched a new, redenominated rupiah. The statement was in response to the viral redenomination video on social media.
"Wow, it's just messy, people," said Head of the BI Communication Department Erwin Haryono to detikcom, Monday (8/2/2021).
But, what exactly is redenomination?
Quoted from the Bank Indonesia website, the rupiah redenomination is an act of simplification and equalization of currency values when economic conditions are stable and healthy.
Redenomination measures are carried out by eliminating several zeros in the value of money or goods, thereby simplifying the writing of the value of goods, services, and money.
Simplification of writing has an impact on simpler accounting and payment systems, without having a negative impact on the economy.
According to Darmin Nasution, who was then Governor of Bank Indonesia for the 2010-2013 period, redenomination would not harm the public. The monetary value of goods or services will not change because what happens is only simplification.
Meanwhile, according to the definition taken from the Big Indonesian Dictionary (KBBI), redenomination is the simplification of the value of the rupiah currency without changing the exchange rate. It should be noted that redenomination is different from sanering. Sanering means cutting value for money.
Redenomination of the rupiah is not new in Indonesia. The government once did this on December 13, 1965. This sudden policy was implemented by issuing Rp. 1 denominations with a value or purchasing power of the community equivalent to Rp. 1,000 for a long time. The regulation is based on Presidential Decree No. 27 of 1965 which aims to create monetary unity in the territory of Indonesia.

 

link  :  https://finance.detik.com/moneter/d-5365604/apa-itu-uang-redenominasi-yang-viral-bergambar-jokowi

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                                              It turns out that Indonesia has implemented 'redenomination'

 


Vadhia Lidyana - detikFinance
Saturday, 18 Jul 2020 13:45 WIB

 

Redenominasi Batal di 2020

 

 Jakarta -
The discourse on the simplification of the rupiah nominal value or redenomination has started again. This discourse is listed in the Minister of Finance Regulation (PMK) Number 77 of 2020 concerning the Strategic Plan of the Ministry of Finance 2020-2024. Redenomination is the simplification of the rupiah nominal by reducing three zeros, such as from Rp. 1,000 to Rp. 1.
Redenomination is not a new discourse in Indonesia. The government has repeatedly voiced redenomination since 2011. However, until now, redenomination has not been successfully applied to the rupiah currency.
However, without realizing it, 'redenomination' has been applied in several ways, especially in the price quotation of a product. For example, well-known cafes in Indonesia have eliminated three zeros from their menu lists.
One cafe that applies it is Starbucks. The cafe from the United States (US) which has many branches in Indonesia has eliminated three zeros from the menu and prices of its products.
From detikcom's observation, Thursday (16/7/2020), at the Starbucks outlet of the Grand Indonesia branch, the menu boards that are displayed behind the cashier are listed products and their prices that do not use three zeros. For example, one drink is being sold at a price of Rp. 53. However, the money that has to be paid is Rp. 53,000.
Not only that, the Grand Indonesia branch of the Kopi Kenangan outlet also implements a menu list by eliminating 3 zeros in the prices of its products. For example, the coffee drink menu is listed at Rp. 18 for regular sizes, and Rp. 24 for large sizes.
Furthermore, Chatime beverage outlets in Grand Indonesia also apply 'redenomination' in their product price lists. For example, the flagship milk tea menu is listed at Rp. 24 for the regular size, and Rp. 27 for the large size.

 

link  :  https://finance.detik.com/berita-ekonomi-bisnis/d-5098585/ternyata-ri-sudah-terapkan-redenominasi-lho

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                                                They said the 'Redenomination' of Coffee Prices

 


Vadhia Lidyana - detikFinance
Thursday, 16 Jul 2020 21:15 WIB

 

Bukti RI Sudah Terapkan Redenominasi

 

Jakarta -
Without realizing it, the redenomination or simplification of the value of the rupiah by cutting off the 3 zeros on the back has started to be implemented. For example, the inclusion of prices on products available on cafe menus.
One of the cafes that has cut 3 zeros is Kopi Kenangan. The beverage products in Kopi Kenangan are listed with prices that do not use 3 zeros.
For example, the Kopi Kenangan Former menu is listed at Rp. 18 for the regular size, and Rp. 24 for the large size.
Founder and CEO of Kopi Kenangan Edward Tirtana said the reason for doing 'redenomination' by including the price of coffee without 3 zeros was simply to follow the times that demanded simplicity and efficiency.
"Actually, we are more up to date with the times. We see people want it to be simpler, easier to read. If the menu is Rp. 16,323, it's hard to read," said Edward to detikcom, Thursday (16/7/2020).
According to Edward, so far all Kopi Kenangan customers understand automatically when they include the price with this writing.
"I already understand everything. Nobody ever says 'oh that's 20 rupiah coffee', fortunately it never happened at Kopi Kenangan," said Edward.
Seeing this phenomenon, according to Edward, people are already accustomed to writing prices without including 3 zeros.
"Yes, that's right. I think because many retailers use net prices, people are used to it," he added.
He also supports the Government's discourse on implementing redenomination.
"Of course we really support it because it is much easier to read and understand for friends abroad," concluded Edward.

 

link  https://finance.detik.com/moneter/d-5096669/kata-mereka-yang-redenominasi-harga-kopi

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                                 Not Just Cafes, Online Stores Have Also Implemented 'Redenomination'

 


- detikFinance
Thursday, 16 Jul 2020 13:42 IWST

 

 

Redenominasi Batal di 2020

 

 

Jakarta -
It seems that the redenomination or simplification of the rupiah currency is already familiar in Indonesia. The government has voiced discourse on redenomination since 2011. Although it has not been implemented in the rupiah currency in circulation today, many instruments in Indonesian society have implemented redenomination.
The redenomination is mainly applied in the price list. Many cafes in shopping centers have cut 3 zeros from the list price of their products.
Not only in cafes, redenomination has also penetrated online shops. There have been many online stores that have opened their services on social media to provide prices for their products without using the 3 zeros. Starting from food vendors, to fashion products.
One of the online shops that sells handmade shoes on Instagram social media, @cikuciku_shoes has also cut 3 zeros in including the price of its product. For example, the shoes are priced at IDR 425k, IDR 465k, IDR 475k, and so on.
Not only that, an online shop @ i.seeglasses that sells various kinds of glasses. The shop is selling its products at the listed price of Rp. 135k.
Then also the store @ ilycakes.byki for example. The shop sells food such as pempek, dumplings, choipan, and so on. The prices of the products are listed without using 3 zeros, but simplified using the letter K or the abbreviation for kilo which means thousand. For example, the pempek package includes a price of Rp. 45k, then the choipan of Rp. 35k.
However, there is one product in the shop that is listed as still using a 3-digit circle. Like srikaya bread with a stated price of IDR 4,500 / piece
So, what exactly will the redenomination look like in the Rp 500 denomination?
In his preliminary study of redenomination, the Governor of Bank Indonesia in 2011, Darmin Nasution, once revealed that with the existence of redenomination, Indonesia will again recognize penny fractions. A penny fraction is a fraction of money whose value is below 1.
Simply put, if this redenomination is done by converting Rp. 1,000 to Rp. 1, then an item with a price of Rp. 500 could become Rp. 0.5 or Rp. 50 cents.
"You take it easy, because we have prepared it. Later we will use the penny system, we have prepared everything," said Darmin in his office, Tuesday night (13/12/2011) ago.

 

link  :  https://finance.detik.com/moneter/d-5095795/nggak-cuma-kafe-toko-online-juga-sudah-terapka

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                                         List of Successful and Failing Countries Cuts Zero in Currency

 


Trio Hamdani - detikFinance
Sunday, 12 Jul 2020 20:45 WIB

 

 

Redenominasi

 

 

Jakarta -
The discourse on reducing the number zero in the rupiah or redenomination is rolling again. The simplification of the figure from Rp. 1,000 to Rp. 1 is stated in the Redenomination Bill which is included in the Minister of Finance Regulation (PMK) Number 77 of 2020 concerning the Strategic Plan of the Ministry of Finance 2020-2024.
The redenomination policy itself is not new, several countries have done it. Some were successful, others failed and then had an economic impact on the country.
Turkey began implementing redenominations in 2005. Currency Lira (TL) was converted into the new Lira with the code YTL. At that time, the conversion of the old to new currency was done by eliminating 6 zeros. The conversion rate is 1 YTL to 1,000,000 TL.
The implementation of redemonination in Turkey was carried out with great care. The process also took 7 years. In the process, the Turkish government is very concerned about the stability of the domestic economy.
In the early stages, the TL and YTL currencies circulated simultaneously for a year. Then the old currency was withdrawn which was gradually replaced by YTL. At a later stage, the term 'Yeni' in the new currency was removed so that the YTL currency returned to TL with a redenominated value. During the redenomination stage, economic conditions were maintained. Turkey's inflation in 2005 to 2009 has also remained stable in the range of 8-9%.
However, not all countries that have redenominated are as successful as Turkey
For example, Russia, Argentina, Zimbabwe, and North Korea, which were recorded as failing to redenominate. Brazil also failed to do redenomination, but finally succeeded in 1994.
The failures of these countries resulted from bad timing. Redenomination, which should be carried out in a stable economic condition, is actually applied in these countries when economic conditions are unstable and have a high inflation rate.
North Korea cuts the zeros in the won currency, from 100 won to 1 won in 2009. The failure is that the stock of new currency is limited. This is because when residents want to replace their old won with new money, the stock of new money is not available.
The success of Brazil in carrying out the redenomination in 1994 was achieved by going through a long process and also failures that had ever come close. In 1986-1989, the country had failed to redenominate.

 

link  :  https://finance.detik.com/moneter/d-5090649/daftar-negara-yang-sukses-dan-gagal-pangkas-angka-nol-di-mata-uang/2

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                        These 4 Countries Have Made Redenominations, What Are the Results?


Vadhia Lidyana - detikFinance
Sunday, 12 Jul 2020 11:19 WIB

 

 

Redenominasi

 

 

Jakarta -
The government rolled out a redenomination plan, aka currency simplification, by cutting 3 zeros. For example, IDR 100,000 becomes IDR 100 or IDR 50,000 becomes IDR 50, with the same amount.
This policy has been implemented by a number of countries. As summarized by detikcom, several countries that have done redenomination, namely Turkey, Brazil, Russia, and North Korea
Some have succeeded in redenomination, some have failed. Here is the information:
(1) Turkey.
Turkey began implementing redenominations in 2005. Currency Lira (TL) was converted into the new Lira with the code YTL. At that time, the conversion of the old to new currency was done by eliminating 6 zeros. The conversion rate is 1 YTL to 1,000,000 TL.
The implementation of redemonination in Turkey was carried out with great care. The process also took 7 years. In the process, the Turkish government is very concerned about the stability of the domestic economy.
In the early stages, the TL and YTL currencies circulated simultaneously for a year. Then the old currency was withdrawn which was gradually replaced by YTL. At a later stage, the term 'Yeni' in the new currency was removed so that the YTL currency returned to TL with a redenominated value. During the redenomination stage, economic conditions were maintained. Turkey's inflation in 2005 to 2009 has also remained stable in the range of 8-9%.

(2) Russia
Redenomination, which should be carried out in a stable economic condition, is actually applied in these countries when economic conditions are unstable and have a high inflation rate. One example is Russia. There, redenomination is even considered an indirect instrument of the government of robbing the people's wealth
(3) North Korea
North Korea cuts the zeros in the won currency, from 100 won to 1 won in 2009. The failure is that the stock of new currency is limited. This is because when residents want to replace their old won with new money, the stock of new money is not available.
(4) Brazil
Brazil made a redenomination in 1994, which was achieved by going through a long process and also failures that had ever come. In 1986-1989, the country had failed to redenominate.
Brazil has simplified its currency from cruzeiro to cruzado. However, the currency exchange rate depreciated sharply against the US dollar, reaching thousands of cruzados for every US dollar. This failure was because the Brazilian government was unable to manage inflation, which at that time was still at 500% per year.

 

link  https://finance.detik.com/moneter/d-5089971/4-negara-ini-pernah-lakukan-redenominasi-apa-hasilnya/2

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            Rupiah Redenomination The Rupiah Redenomination Plan will disappear in 2020

 

 

Petugas Bank Mandiri Kantor Cabang Pembantu (KCP) Tasikmalaya menyiapkan uang pecahan untuk layanan penukaran uang baru di Jalan Sutisna Senjaya, Kota Tasikmalaya, Jawa Barat,Jumat (17/5/2019). ANTARA FOTO/Adeng Bustomi/foc.

 

 

 tirto.id - The rupiah redenomination plan has enlivened Indonesia since the last few years. Pros and cons of coloring the discourse of redenomination. Slowly, the issue of the redenomination of the rupiah sank, replaced by the chaos of political problems in Indonesia. The discourse on the redenomination of the rupiah surfaced again when Commission XI of the DPR conducted a fit and proper test on the candidate for Senior Deputy Governor of Bank Indonesia (BI), Destry Damayanti some time ago. According to Destry, the discourse on redenomination should be reexamined, because the current rupiah exchange rate is in the range of around Rp.14,000 per US dollar. This makes the value no longer efficient as a means of payment. "We need to review again, because one of the conditions for a successful redenomination is stability," said Destry, who currently serves as the Board of Commissioners of the Deposit Insurance Corporation (LPS), reported by Kompas. The implementation of the redenomination, which was originally targeted to occur on January 1, 2020, could indeed be delayed. This is because the legal basis for redenomination does not yet exist, even though the term of office of members of the DPR RI for the 2014-2019 period will end soon. "Implementation of redenomination in 2020 will not be possible, because the legal basis in the form of a law does not yet exist," said Executive Director of the BI Communication Directorate Onny Widjanarko to Tirto. Although the trial was canceled on January 1, 2020, according to Onny, currently BI is continuing to study redenomination by observing the current Indonesian and global economic conditions. The national political cycle and trade wars that affect the rupiah exchange rate and the current account deficit (CAD) are important studies in formulating the implementation of redenomination. "This year, it seems that the initiative from BI through the government regarding redenomination will not yet be submitted to the DPR," Onny added.

 

What is Redenomination? The idea of redenomination in Indonesia surfaced when Darmin Nasution served as the Acting Acting Governor of BI to replace BI Governor Boediono who became Vice President. Launching the special report archive written by Gatra, not even a month since the DPR RI Plenary Session as Governor of BI was approved, Darmin released the redenomination announcement. So, what is the redenomination that has been a long-standing trade? Launching KBBI, redenomination is the simplification of the value of the rupiah currency without changing the exchange rate. The aim of redenomination is to simplify the number of digits in the rupiah denomination without reducing the purchasing power, price or value of the rupiah against the price of goods and / or services. Redenomination is different from sanering or cutting (value) of money, as happened in Indonesia in the late 1950s, to be precise on August 25, 1959. At that time, the 500 and 1,000 rupiah notes were reduced in value to 50 rupiah and 100 rupiah. In other words, the value for money is cut by up to 90 percent. In contrast to sanering, redenomination does not reduce the value of the currency, so it does not affect the price of goods. Redenomination is simply simplifying banknotes to make transactions more efficient. Psychological factors and habitual problems in the community regarding the simplification of currency values must be well socialized if the redenomination program is to be implemented. "Because from 1,000 rupiah to 1 rupiah it seems as if the value becomes small when in fact it is not. One rupiah costs 1,000 rupiah. So, there must be a lot of socialization regarding this matter," explained Lana Soelistianingsih, lecturer at the University of Economics and Business Indonesia to Tirto.

 

Redenomination Effects Lana said, if redenomination is implemented in Indonesia, there will be more positive effects than negative ones. First, redenomination makes it easier to calculate, because the three zeros that accompany the back of the unit of money are not used. In banking calculations, simplifying the currency digits by reducing the three zeros in the rupiah will save the cost of the technology used. In addition, the simplified digit form also makes it easier to read financial reports in accounting practice. Second, redenomination can also be a way to increase confidence in the rupiah currency. In addition, redenomination can also reflect equal credibility with other developed countries in the region. Third, redenomination can reduce the rate of inflation. But on the other hand, redenomination can have a negative impact in the form of soaring inflation. This can happen if the availability of the smallest currency unit is not available and is well distributed throughout Indonesian society. With the smaller the unit of currency in effect at the time of redenomination, BI must prepare the smallest unit of money.  

 

The availability of the smallest unit of money such as this penny must still exist even though digital payments are also applicable at the same time in Indonesia.

"Like the United States, which until now still has cents for cash payments even though digital payments there continue to progress. The availability of this smallest unit of currency is very important and BI must prepare it," Lana said. The smallest unit of money, Lana continued, became one of the means of controlling inflation. This is because if the price of goods or services is worth 1,500 rupiah and if the redenomination applies, the value becomes 1.5 rupiahs, the nominal value can still be paid and affordable by the public. He said it would be dangerous if the 1.5 rupiah nominal value was rounded up to 2 rupiah, equivalent to 2,000 rupiah. In addition, it is also very important for the outer and interior islands of Indonesia to have this smallest denomination. "Because if it is not available and properly distributed, it will trigger unnecessary inflation when people use cash. Especially in Indonesia, the use of cash as a means of payment is still higher than non-cash," added Lana.

 

Is Indonesia ready? So, is Indonesia ready with redenomination? An economist from the Institute for Development of Economics and Finance (INDEF), Bhima Yudhistira Adinegara, said there are three main conditions before a country's currency redenomination is carried out. First, the exchange rate is stable. Second, inflation is under control and thirdly, the economic fundamentals must be in good condition. In this context, according to Bhima, the Indonesian economy is expected to face considerable external and internal pressures due to the US-China trade war in the next two years. This pressure resulted in lower commodity prices, which ultimately affected export and import performance as well as the current account deficit (CAD). Indonesia's economic growth, which is still shackled at around 5 percent with people's purchasing power, is currently in the recovery phase. The inflation rate that is at risk of rising due to the policy plan to remove fuel oil (BBM) subsidies and electricity tariffs in 2020 should also be considered in the redenomination.

Food inflation also needs to be monitored, in addition to the rupiah exchange rate against the US dollar which is still at risk of weakening to the range of Rp. 14,500 per US dollar at the end of 2019. "So if the redenomination is carried out in a hurry, public trust will decrease in the rupiah," said Bhima to Tirto. According to him, against this condition, it will increase the panic and increase the demand for the US dollar currency. Thus, the goal of redenomination may not be achieved. In addition, added Bhima, redenomination requires a long preparation and socialization. Turkey, for example, took 10 years to prepare and socialize the redenomination of the lira currency. In 2005, Turkey cut 6 zeros in its currency. The preparation, according to Bhima, is mainly related to bookkeeping transactions and transactions of business actors in the community. The cost of transitioning to redenomination is also quite expensive for business actors. Learning from the experience of sanering in the late 1950s and redenomination carried out in 1965 in Indonesia, education and outreach must be carried out gradually and continuously, especially in rural areas. This needs to be done so as not to cause turmoil in the Indonesian financial industry. "In conclusion, the Redenomination Bill is unlikely to be passed until 2024," said Bhima.

 

link  :  https://tirto.id/pupusnya-rencana-redenominasi-rupiah-pada-tahun-2020-edzG

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22 hours ago, rvmydinar said:

I wonder have folks here ever been owning and holding indonesia rupiah? Because it looked like they have been talking about redenomination, not revaluation. But i could be wrong though.

Me, Me,,plus 7 other, colorful pieces of paper from 7 countries!

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18 hours ago, rw.sutton said:

Me, Me,,plus 7 other, colorful pieces of paper from 7 countries!

iraq is oil producer country and oil is the mainly source of income for country of iraq.  on the other hand,  this indonesian country is 90% agricultural country, mainly rice ( but not oil producer country ) , therefore, agriculture is the mainly source of income for country of indonesia. that's why i prefer iraq will rv the iqd first before this exotic currency.  the chance for iraq to rv the iqd slightly higher than the country of indonesia. again, " no risk no gain ".

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18 hours ago, rw.sutton said:

Me, Me,,plus 7 other, colorful pieces of paper from 7 countries!

iraq is oil producer country and indonesia is 90% agricultural country, mainly rice. which one is the most expensive between the price of oil and the price of rice? the price of oil is much more expensive  than the price of rice. that's why i prefer iraq to rv the iqd first before this exotic currency. food for thought.

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                     Rupiah Redenomination Plan in Islamic Economic Perspective

 


Updated: 5 April 2021 23:43 381 1 0

 

Discourse regarding the government's plan to redenominate the rupiah has resurfaced. This is due to the issuance of Minister of Finance Regulation Number 77 / PMK.01 / 2020 concerning the Strategic Plan of the Ministry of Finance for 2020-2024. In this regulation, there is a Bill on Changes in the Price of Rupiah (RUU Redenomination).
So what is redenomination? Should Indonesia carry out redenomination and how will it impact the Indonesian economy? How about redenomination from an Islamic perspective?

 

Definition of Redenomization
Redenomination is a reduction or simplification of the digit value of a currency without changing the exchange rate. According to Dogarawa (2007) redenomination is a process in which the new currency replaces the old currency with a certain ratio. Meanwhile, Iona (2005) states that redenomination is a simplification of the value or nominal stated in a particular currency without cutting the exchange rate itself, accompanied by adjustments to commodity prices on the market and exchange rates with foreign currencies.

 

We often encounter this redenomination or simplification of the digit value of a currency and apply it in everyday life. For example, a restaurant or cafe usually writes the price on the menu table as simple as 25K, which means that the price of the item is IDR 25,000. The writing is different and tends to be simpler by removing the 3 digit zeros and replacing them with the letter k.

 

Also, when we calculate using a calculator, we often use redenomination, for example 1,000,000 but counting it with 1,000 reduces the 3-digit zeros, but the value is still the same, namely Rp1,000,000 This is done to simplify calculations and minimize errors in calculations.

 

The Purpose and Impact of Redenomination
In fact, the discourse on the redenomination of the rupiah is not something new because it has been around since 2010. On 3 August 2010, the Governor of Bank Indonesia planned to redenominate against a backdrop of high inflation conditions, so that the value of currency against goods would decrease in a short time and the nominal value. in currency is getting bigger (Amir, 2013).

 

This redenomination policy was carried out with the aim of maintaining the stability of the rupiah value by streamlining calculations in the payment system in Indonesia. Redenomination makes it easier to record and calculate in accounting, eliminating the 3 digit zeros can simplify writing and minimize errors. Currently the rupiah exchange rate with the US dollar is the highest in Southeast Asia, $ 1 is equivalent to approximately Rp.14,500 in contrast to other countries such as Malaysia, where the exchange rate of 1 dollar is equivalent to 4.14 ringgit and Thailand 31.38 baht for that. redenomination can be done to increase the credibility of the rupiah.

 

It is not only Indonesia that has redenominated, there are other countries such as Turkey that have successfully redenominated their currency, namely the Lira by eliminating the six-digit zeros so that 1,000,000 lira became 1 (new) lira in 2005.

 

Redenomination is not always successful, many factors cause a country to fail in redenomination. Indonesia has also experienced redenomination failures, namely in 1965 which was caused by people who did not understand the redenomination policy. At that time Indonesia was experiencing hyper inflation of 650%. Reflecting on this failure, the government's readiness is needed to carry out this redenomination policy. There is a need for detailed socialization to the public so that there is no misunderstanding of the community about the use of money. In addition, it takes a long time and sufficient preparation to carry out the redenomination. Do not let an incident like 1965 happen again because it is not the right time to do the redenomination.

 

Redenomination in Islamic Economic Perspective
From an Islamic point of view, monetary policy involves the responsibility of the state in controlling monetary instruments to promote economic growth, create social justice, create jobs, use national productivity, and maintain currency stability both internally, namely maintaining the inflation rate and externally, namely the exchange rate.
The characteristic of the Islamic monetary system compared to conventional monetary systems is that it is free from interest (riba) in the processes, procedures, mechanisms, and implementation of economic policies. Then another aspect that distinguishes the Islamic monetary system from the conventional one is that money is merely a medium of exchange for smoothing and encouraging economic activity not as a tradable commodity (Yuliadi, 2007: 209). 

 

The concept of money and the conventional financial system is different from the concept of currency and the Islamic financial system. The concept of currency and the traditional financial system has always been synonymous with interest-based interest rates (riba) which drive inflation, so that it will always cause an economic crisis that will lead to a decline in the value of money. If economic conditions are stable, inflation is low and economic growth is still high, currency redonomination can be carried out. For an interest-based financial system, because the conventional interest-based financial system will always trigger inflation and the economic crisis, the redenomination of money will be followed by the next redenomination.

 

In the Islamic monetary policy system, redenomination often does not occur, because redenomination will only occur in conventional monetary policy, enomination tends not to occur in an Islamic economic system because redenomination occurs because the state has experienced a high rate of inflation, which occurs due to interest rates or usury, whereas in Riba Islam is prohibited. If riba is eliminated, there will be no inflation, and there will be no redenomination in the Islamic economic system.

 

Even though Indonesia is a country with the largest Muslim majority, the economic system used as a whole is not an Islamic economic system. In Indonesia there are still many conventional banks that apply the usury system. Indonesia has also experienced inflation, even hyper inflation, which even reached 650%. Therefore, to redenominate the rupiah it is possible to do it but pay attention to a number of things so that there is no failure in redenomination. In order for the redenomination of the rupiah in Indonesia to be successful it is necessary to pay attention to the following:
• Performed when economic conditions are stable
• Prepare carefully, in terms of new currency, withdrawal of old money, socialization to the public, and so on.

 

link :   https://www.kompasiana.com/widya79321/606b3c0bd541df3270043063/rencana-redenominasi-rupiah-dalam-perspektif-ekonomi-islam?page=2

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                         Viral 1.0 denominations, will the rupiah begin to redenominate?

 

 

Updated: 5 April 2021 23:43

 

Recognizing Denomination 1.0
The virtual universe was shocked by the emergence of a new nominal rupiah currency, namely the 1.0 denomination. Many netizens suspect that this money is an attempt to redenominate the rupiah. However, this was denied by Bank Indonesia (BI) and Peruri as the monetary authority in the country.

 

Reporting from cnbcindonesia.com, Bank Indonesia emphasized that the money circulating viral on social media is not Rupiah, which means that money is not a legal means of payment.

 

"The money in the video is not rupiah currency and is not a legal means of payment," said Head of the BI Communication Department Erwin Haryono, quoted from the same time, Monday (10/5/2021).

 

 

Viral Uang Pecahan 1.0, Apakah Rupiah Mulai Redenominasi_ 02

 

 

 

Responding to the same thing, Perum Percetakan Uang Republik Indonesia or Perum Peruri confirmed that the 1.0 note was printed. However, the money is a house note or specimen money.

 

Specimen money is money that cannot be used as a legal means of payment because it does not have the characteristics of Rupiah as stipulated in the Law on Currency Number 7 of 2011.

 

"Peruri publishes house notes or specimen money used as a marketing tool to promote samples of products or money produced by Peruri," wrote the company through its Instagram account.
Not a Legal Payment Tool

 

As explained by BI and Peruri, the 1.0 denomination cannot be used as a legal tender. Peruri explained that Indonesia's official currency, namely the Rupiah, has the following characteristics based on the Currency Law no. 7 of 2011.
1. Has a picture of the national emblem "Garuda Pancasila"
2. Has the phrase "the Unitary State of the Republic of Indonesia"
3. Has a fraction designation in numbers and letters as the nominal value
4. Has the signature of the Government and Bank Indonesia;
5. Has a fractional serial number
6. Has the text "With the grace of God Almighty, the Unitary State of the Republic of Indonesia issues Rupiah as a legal payment instrument with a value of ..."

 

However, as has been explained regarding the characteristics of the Rupiah, the specimen money did not contain any of the things as stated so that the 1.0 note was not a means of payment and was not a rupiah redenomination.

 

Although the redenomination efforts have not been carried out due to unstable economic conditions, we must still manage our personal finances properly.

 

link https://www.finansialku.com/viral-uang-pecahan-1-0-apakah-rupiah-mulai-redenominasi/

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         Government Ready to Redenominate Rupiah, One Thousand Rupiah to Rp 1?

 

Updated: 5 April 2021 23:43


The Ministry of Finance proposes the redenomination of the rupiah to the Government of Indonesia through the Bill on Redenomination of Changes in Rupiah Prices.

 

Indonesian Government Seriously Redenomination of Rupiah, Where Has It Been?
The redenomination or simplification of the value of the rupiah currency that the Government of Indonesia has long planned is getting more and more clear.

 

This is shown by the readiness of the government in discussing the Draft Law on Changing the Price of the Rupiah (RUU Redenomination).

 

Actually, this planning has been going on for the last three years. In 2017, the Ministry of Finance together with Bank Indonesia (BI) for the first time submitted the Currency Redenomination Bill.

 

At that time, Minister of Finance Sri Mulyani and the Governor of Bank Indonesia (2013-2018 period) Agus DW Martowardojo submitted a direct application for the Currency Redenomination Bill to President Joko Widodo at the Merdeka Palace, Jakarta.

 

Article 2 paragraph (1) states that the redenomination of the rupiah is carried out by eliminating three zero digits so that IDR 1,000 becomes equal to IDR 1. Then in Article 2 paragraph (2) it is stated that IDR 1 will be equivalent to 100 cents.
Meanwhile, Article 2 paragraph (3) states that the rupiah redenomination will take effect on January 1, 2020.

 

 

Pemerintah Siap Redenominasi Rupiah, Seribu Rupiah jadi Rp 1 01

 

 

We all know that this did not happen because the bill had not yet been passed so that it had not become a binding legal product.

 

CNBC Indonesia reported that President Jokowi's response was reportedly welcoming and ready to be discussed by legislators or in this case the House of Representatives.
Unfortunately, from 2018 to 2020, the Redenomination Bill was not included in the national legislation program (prolegnas).
 
Why is Redenomination Necessary?
The changes in the rupiah price have been fully explained in a study by Bank Indonesia (BI). Redenomination is not sanering or cutting people's purchasing power through cutting the value of money.
Redenomination is usually carried out in a stable economic condition and leads to a healthier direction.
Meanwhile, sanering is cutting money in an unhealthy economic condition, where only the value of money is cut.
In redenomination, both the value of money and goods, only a few zeros are removed.

 

Thus, redenomination will simplify writing the value of goods and services, followed by simplifying writing of payment instruments (money).

 

Furthermore, this will simplify the accounting system in the payment system without causing a negative impact on the economy.

 

Bank Indonesia views that the success of the redenomination is largely determined by the various things that are currently being studied, as has been done by several countries that have succeeded in doing so.

 

The experience of other countries shows that the success of redenomination demands macroeconomic stability, controlled inflation, currency exchange rates, and fiscal conditions.

 

Meanwhile, the Ministry of Finance stated that the Redenomination Bill or rupiah simplification is considered to have a number of urgencies to be discussed because it can help improve economic efficiency in the country.
The first urgency is to speed up transaction times to reduce the risk of human error.

 

"The urgency of formation: Raises economic efficiency in the form of accelerated transaction time, reduced risk of human error, and efficiency of quoting prices for goods / services due to the simple number of digits in the rupiah."
 
Furthermore, the second urgency is that simplification of the rupiah can make the APBN financial transaction system more concise because it does not have many digits.

 

"The implementation of the Rupiah Redenomination is currently under review by several related institutions, for the next process awaiting further direction and policies from the government," wrote BI's explanation as quoted by CNBC Indonesia.

 

 

Pemerintah Siap Redenominasi Rupiah, Seribu Rupiah jadi Rp 1 01

 

 

However, Bank Indonesia will not implement redenomination in the near future because Bank Indonesia realizes that redenomination requires a long national commitment and time and preparation.

 

link  :  https://www.finansialku.com/pemerintah-siap-redenominasi-rupiah/

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