Jakarta - The House of Representatives Commission XI of the House of Representatives PPP Zaini Rahman convey three important things that need to be highlighted prior to redenomination or simplification of the rupiah currency without reducing its value. One is the issue of socialization.
"Against socialization redenomination plan in 2013, there are some things that need to be highlighted," Zainal said in a press release on Thursday (27/12/2012).
First, according to Zainal is a notice to the public about the anticipated effects of inflation will be unavoidable. "This becomes a serious problem," he said.
Secondly, he said, about the transition cost would be enormous, covering any transition costs and the budget charged to anyone.
"And the third problem for the psychological effect of looking at the standard of value for money," said Zainal.
It is said Zainal, the government and the central bank should be honest to the public about the core idea of the redenomination in terms of both goals and economic effects on society. During this BI always mention that it pengetiannya redenomination single, the simplification of currency and denomination that is more practical.
"But in another sense not realize is that it's a thousand money will really be worth one, so this is also significant as an increase of the value of the rupiah exchange rate as well as writing and drastic decline of the rupiah psychologically," he said.
"In this context, the central bank should be to convey to the public what are anticipated to address these impacts, including what if the transition failed. How long that will be the default transition process failed or succeeded, and so forth," Zainal closed.
Redenomination is reducing digits (zeros) in the back of the currency without reducing the value of the currency. Eg Rp 1,000 to Rp 1 to simplify the denomination (fractional) currency into smaller fragments.
With the simplification that the same thing simultaneously performed well in the prices of goods and the process does not change people's purchasing power.
The plan, Currency Redenomination discussion of the bill will be held in May 2013.