Rupia's redenomination



Redenomination “, Rp. 1000 vs Rp. 1

            Recently, national hot topic in economic sector is “ redenomonation “. Redenemonation is a regulation to cut three zeroes fom ruphia. For example, Rp. 1000 become Rp. 1, or       Rp. 50.000 become Rp. 50. It is necessary to understand that “ redenomination “ does not change the intrinsic value or value in exchange of ruphia. It means that redenomination only changes the appearence of of ruphia especially for zeroes.
         It has ben claimed that redenomination is only for nothing, because it has no positif effect for indonesias economic condition. It is also claimed that to ommit three zeroes from ruphia in not suitable for indonesia because it was specially taken place for hyperinflation condition, whereas indonesia is still stabil. Moreover, it will spend much budged to implement it, because it needs much expenses to make a new kind of ruphia.
         However, Indonesian Bank governor, Darwin Nasution states that redenomination is really good for indonesia becoause it can symplify accounting system and to improve calculating efficiency. It can help accountants to be more easy in writing of value transaction. For example, when there is a calculation of quintillion ruphias it is really difficult to count and write it. Whereas after redenomination getting easier to write and count. In addition, to rebattle the claim that redenomination was speciaaly taken place for hyperinflation, governor of BI states that it has been wrong preception, becouse to cut three zeroes is suitable for stabil condition, becouse it does not change any market circulation proccess.
         In conclution, redenomination gives more positive effects than the negative ones eventhough it will be a suprising thing for the indonesians. So let the government sicialize it so that the people can understan the redenomination.

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