Monday, 21st August 2017

Now Right Moment for Redenomination: Chief Economic Minister

id redenomination, the countrys currency rupiah, The inflation,
Jakarta (Antara Bali) - Coordinating Minister for Economic Affairs Darmin Nasution said here on Wednesday that now was the right moment to conduct redenomination or simplification of the countrys currency rupiah considering current inflation.

"Now is the good moment. Before the rate of inflation was still quite high although it was under control," he said.

He said the most important economic indicator to take into account with regard to redenomination was inflation which is now well maintained.

The inflation in 2016 was recorded at 3.02 percent down from 3.35 percent in 2015 while assumed inflation agreed upon for the 2017 draft revised budget has been set at 4.3 percent.

Based on fundamental macro-economic assumptions which will be used as the basis for drafting the 2018 draft budget and financial note inflation has been projected at 2.5 percent to 4.5 percent.

Darmin said in view of that he thought it would not be a problem if the redenomination plan was to be carried out. "It has been prepared and discussed since four or five years ago," he added.

House of Representatives Commission XI member Andreas Eddy Susetyo said he shared the biew that inflation must be taken into account before implementation of redenomination Was to be carried out.

He said inflation condition in the past two years has met the criteria for supporting the implementation of the plan.

Under the plan the rupiah will be simplified without reducing its such as from Rp13,000 to Rp13. The redenomination will be accompanied by simplification of digit numbers of prices of goods and services and it would not suppress public buying power. (*)

Editor: I Gusti Bagus Widyantara