The Constitutional Court of Indonesia (MK) has officially rejected a judicial review request concerning the redenomination of the rupiah, specifically the proposal to simplify the value from Rp 1,000 to Rp 1. What was the Court's reasoning?

This decision was read out in Case Number 94/PUU-XXIII/2025 at the Constitutional Court building located on Jalan Medan Merdeka Barat, Central Jakarta, on Thursday (July 17, 2025). The petition was filed by Zico Leonard Djagardo Simanjuntak, who challenged Article 5 paragraph (1) letter c and Article 5 paragraph (2) letter c of Law Number 7 of 2011 on Currency.

In his petition, Zico requested that the aforementioned articles be declared unconstitutional unless interpreted to require a nominal value adjustment through a conversion of Rp 1,000 to Rp 1 and Rp 100 to 10 cents. He also asked that the same principle be applied to all other rupiah denominations by analogy (mutatis mutandis).

Constitutional Court’s Consideration

The Court stated that redenomination is an issue that falls under the authority of monetary policy. MK emphasized that such a policy involves multiple critical considerations, such as fiscal stability, readiness of payment infrastructure, and public financial literacy.

"The Court feels it necessary to reaffirm that redenomination, which refers to simplifying currency digit values without changing their actual worth, is entirely within the scope of monetary policy and must be governed by statutory law. This policy demands thorough analysis from the perspective of macroeconomics, fiscal and monetary stability, payment system readiness, and public financial education," the Court explained.

Furthermore, the Court noted that the challenged provisions merely regulate the requirement to display currency denominations in both numeric and written form, without addressing the actual value of the currency.

"In this context, the validity of Article 5 paragraph (1) letter c and paragraph (2) letter c of Law No. 7/2011, which only stipulate the obligation to express currency denominations in digits and words, cannot be construed as a direct obstacle or reason for the redenomination policy not being implemented," the MK stated.

The Court further concluded that any redenomination process must be carried out through legislative means. That is, it must be enacted via a formal legal process and not merely through judicial interpretation.

"Therefore, redenomination—which simplifies currency nominal values without altering exchange rates or purchasing power—must be initiated by the legislature. The petitioner should pursue this objective through legislative advocacy rather than attempting to reinterpret existing legal provisions via judicial review," the MK clarified.

The Court ultimately concluded by declaring: “The Petitioner’s request is hereby entirely rejected.”

For context, Zico had previously filed a similar petition under Case Number 23/PUU-XXIII/2025, also requesting the redenomination of Rp 1,000 to Rp 1. That earlier petition was dismissed and declared inadmissible.