REPUBLIKA.CO.ID, JAKARTA - Currency redenomination plan would not affect Indonesian economic condition, Indonesian Minister of Finance Agus Martowardojo said. "Redenomination does not mean reducing the currency's value," Martowardojo said on Wednesday.

The Chairman of the National Banks Association (Perbanas) Sigit Pramono believes that redenomination will send positive signal to banking industry due to efficiency, principally in the making of financial report. "Banks can publish cheaper financial report," he said.

The impact of redenomination for banking industry will be perceived in long term. The transition, he said, was needed. "Like Turkey did, the old currency and the new one should be used at the same time," he said. The transition needs at least 3-5 years.

An analyst, Aviliani said Indonesian growth of Gross Domestic Product (GDP) needed redenomination. "The value of GDP approaches 10,000. It means that we have problem with digit. It is best to simplify it," Aviliani said.

Yet, redenomination costs a lot because Bank Indonesian must print new money. Redenomination can also lead to inflation. People will increase the price of the goods because they consider the currency is changed.

With those risks, Aviliani expects good socialization and preparation from the government. Information technology must also be prepared. Thus, redenomination may be ready to be implemented on 2015.

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