Indonesia: IDR currency redenomination plan : update
On 2 November 2012, the Indonesian Ministry of Finance (MOF) disclosed that the draft regulation concerning the Indonesian Rupiah (IDR) currency redenomination plan would now be submitted to Parliament in 2013, with no specific date mentioned.
Despite the delay in the submission of the draft legislation, there is no change in the proposed timeline for the redenomination as previously disclosed by the MOF.
Background
The MOF had disclosed the following key items in the draft legislation, previously expected to be submitted to Parliament in 2012:
- The redenomination must not devalue the currency.
- The IDR will be redenominated with a ratio of one unit in the "new" currency equal to IDR 1,000 in the "old".
- During the transition period, both currencies must still be valid payment instruments in Indonesia.
- The proposed timeline for the redenomination plan is as follows:
- 2013 to 2015: Transition period, in which the "old" and "new" currencies can be used in parallel.
- 2016 to 2018: Gradual withdrawal of the old currency.
- 2018 onwards: Possible renaming of the “new" currency.
Impact on customers
The Indonesian government is expected to introduce the "new" currency with fewer digits. Further details of the draft regulation and the expected date for approval by the Indonesian Parliament are not yet available.
We are currently assessing the redenomination requirements and will provide further updates when more information is available.
Further information
For further information, customers may contact Clearstream Banking1 Customer Service or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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