JAKARTA, MKRI – The policy of redenomination—simplifying the number of digits in currency denominations without reducing their actual value—is a monetary policy domain fully under the purview of legislative regulation. This policy requires comprehensive consideration of macroeconomic factors, fiscal and monetary stability, payment system infrastructure readiness, and public financial literacy.
In the context of the validity of Article 5 paragraph (1) letter c and Article 5 paragraph (2) letter c of Law No. 7 of 2011, which only regulate the obligation to state currency denomination in both numbers and words, these cannot be interpreted as obstacles or direct causes for the redenomination not being implemented. This legal reasoning was delivered by Constitutional Justice Enny Nurbaningsih during the pronouncement of the Constitutional Court's ruling in Case Number 94/PUU-XXIII/2025 on Thursday (17/7/2025).
Furthermore, the Court noted that upon close examination, Article 5 paragraph (1) letter c and Article 5 paragraph (2) letter c are part of regulations concerning the “Features, Design, and Material of Rupiah,” which relate to the general and specific characteristics of both paper and coin currency. Therefore, if the Court were to grant the Petitioner's request to interpret these provisions as requiring a nominal conversion ratio of Rp1,000 (one thousand rupiah) to Rp1 (one rupiah), and Rp100 (one hundred rupiah) to 10 cents, and apply it mutatis mutandis to all other currency denominations, such interpretation would be inconsistent with the entirety of Article 5, which is unrelated to redenomination.
“Thus, redenomination—defined as the simplification of currency denominations without altering the exchange value or purchasing power—must be carried out by lawmakers. For this purpose, the Petitioner should advocate through the legislative process, because the redenomination of the Rupiah cannot be implemented merely by altering or reinterpreting the provisions under judicial review,” said Justice Enny.
Redenomination Policy
The redenomination of the Rupiah is essentially a fundamental policy with broad consequences for the monetary system, financial transactions, and public economic behavior. As a monetary policy that affects the country’s financial system and public economic behavior, it falls under the domain of lawmakers to formulate such a policy based on economic, social, and national stability considerations. Based on the above legal considerations, the Court concluded that the Petitioner’s arguments regarding the unconstitutionality of Article 5 paragraph (1) letter c and Article 5 paragraph (2) letter c of Law No. 7 of 2011 are legally unfounded.
“The Court rules to reject the petition in its entirety,” declared Chief Justice Suhartoyo when reading the verdict.
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In the Preliminary Hearing held on Tuesday (17/6/2025), the Petitioner argued that Article 5 paragraph (1) letter c of the Currency Law contradicts the Constitution. The Petitioner claimed that the excessive number of zeroes in the Rupiah currency is inefficient. In contrast, many countries have removed zeroes from their currency, reflecting economic stability.
Moreover, the Petitioner highlighted that dealing with large-denomination figures often leads to miscalculations during transactions, particularly with digital payments using QRIS (Quick Response Code Indonesian Standard). Such errors, caused by the abundance of zeroes, can open up opportunities for fraud. For example, if a cashier or system acts dishonestly, they might ignore these mistakes and withhold the excess amount, causing financial harm to the Petitioner and other frequent users of digital payment systems.
Author : Sri Pujianti
Editor : Lulu Anjarsari P.
PR : Fauzan Febriyan
Translator : Agusweka Poltak Siregar
Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version prevails.
Full decision can be accessed at: Decision of Case Number 94/PUU-XXIII/2025
Thursday, July 17, 2025 | 15:27 WIB 5132