Agus Martowardojo (Photo: Twitter/@bank_indonesia)
Bank Indonesia (BI) has prepared the proposal and the stages for the plan to redenominate rupiah, despite the draftbill still beingdiscussed by the House of Representatives.
If the discussion comes to fruition, the preparation phase will be commenced in 2018 and 2019 with January 1, 2020 as the start of the transition period.
"So, if in 2017 [the proposal] could be approved by government and the House, 2018 and 2019 will be the years of preparation, and [the regulation] will be valid [starting from] January 2020," said Bank Indonesia Governor Agus Martowardojo at the Presidential Palace Complex, Jakarta, Tuesday.
The transition period will takefour years until 2024 withthe 'old' and 'new' Rupiah regulation will apply during the period.
"January 1, 2020 to 2024 is a transitional period, where at that time in Indonesia, there'll be old and new Rupiah, both are valid. And, the prices of goods and services will be regulated by the Law, [and] featured with old and new fare," he explained.
The phase then proceeds to the withdrawal of old version of Rupiah, in which Agus mentioned it as a finalization.
"After that, after five years, there'll be face out phase in 2025 to 2029. So, it takes around 11 years for the whole process to be completed," said Agus.
(brl/red)
