Rupiah redenomination: How will Indonesia’s currency reform affect its economy?
Redenomination can improve the country’s economic efficiency and enhance confidence in the currency but risks driving inflation
In Indonesia, travellers and even locals have long grappled with prices in rupiah that stretch into the millions and billions, making regular purchases seem confusingly expensive.
A cocktail at a high-end beach club in Bali can cost up to 190,000 rupiah (around S$15) while a full-day spa package at a luxury resort there can run up to 1.05 million rupiah (about S$82).
But South-east Asia’s largest economy is finally pressing ahead with plans to reduce the number of zeros on its national currency – a move that would make price tags easier to read, and transactions simpler for consumers.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
