Redenomination Needs Long Transition Period: President

Jakarta (Antara Bali) - President Joko Widodo said the rupiah redenomination would need a long transition period and could not be immediately enacted after the draft law is approved.

"It still needs a long (transition) period when (the draft law) is approved," the president said, after launching the new rupiah notes in the central bank's (BI) building here on Monday.

President Jokowi stated that there might be a seven year transition period following the issuance of the law on rupiah redenomination.

"This should be submitted in the Prolegnas (national legislation program). The draft law should have been submitted to Prolegnas 2017, but we didn't see it yet," he added.

"It would need a long transition period after the approval. Now, we have not even seen the draft law submitted in the Prolegnas," he reiterated.

Previously, the government reportedly proposed a draft law on redenomination to be submitted to the National Legislation Program (Prolegnas) in 2017.

The central bank (BI) has expressed hope that the draft law could soon be discussed in parliament. BI officials said the country's economy in 2017 would be conducive for discussions about legal basis to implement redenomination.

The situation was different when the proposal first appeared in 2013, BI said.

Redenomination is a reduction in the face value of a currency, by deducting its digits without changing the currency's value. (WDY)