Indonesia’s Digital Financial and Economic Transformation Through Digitalize Redenomination

Silvia Puspa Kumaeroh, Muhammad Ayesha Arif Sandy, Muhammad Ikhwanurrohiim Septenta, Fina Dwi Utami, Mutiara Tresna Parasetya

Abstract

The financial sector plays an important role in the economy and continues to develop. Some central banks are actively exploring the initiation of digital currency that will become a legal tender [6]. This digital currency is known as the Central Bank Digital Currency (CBDC). Apart from the technological aspect, the CBDC must also be supported by the efficient value of the rupiah denomination. Therefore, it is necessary to simplify the number of digits in the rupiah denomination with a redenomination policy. The implementation of the two policies separately will take a long time in the formulation process. This research comes up with a new concept called "Digitalize Redenomination". This concept that has never existed in previous studies integrates both redenomination policy and CBDC at the same time. The research methods are both qualitative and quantitative. The qualitative method is done by analyzing literature study data and interviews with Bank Indonesia and economists. While the quantitative method is done by analyzing questionnaire data of the public. From this research, it is concluded that the current condition of the financial system in Indonesia has entered the era of digital transformation and at the same time, Indonesia also needs to simplify the rupiah denomination. The Digitalize Redenomination mechanism has the potential to be applied in Indonesia. However, the application of this concept cannot be implemented until the national economic condition is stable. After the economy is stable, the government can review this concept to be implemented in Indonesia.

Keywords

Digital Financial; Economic Transformation; CBDC

Full Text:

PDF

References

S. Adiningsih, Transformasi Ekonomi Berbasis Digital di Indonesia, Jakarta: PT Gramedia Pustaka Utama, 2019.

Bank Indonesia, "Central Bank Digital Currency," p. 28, September 2018.

Digiconomist, "Bitcoin Energy Consumption Index," 8 Agustus 2021. [Online]. Available: https://digiconomist.net/bitcoin-energy-consumption/.

Ychart, "Bitcoin Average Transaction Fee," 8 Agustus 2021. [Online]. Available: https://ycharts.com/indicators/bitcoin_average_transaction_fee.

Bank Indonesia, "Transaksi Sistem BI-RTGS Berdasarkan Kategori Peserta," 09 08 2021. [Online]. Available: https://www.bi.go.id/id/statistik/ekonomi-keuangan/ssp/RTGS-Kelompok-Pelaku.aspx.

P. B. I. A. C. M. K. R. N. R. Berry A. Harahap, "Perkembangan Financial Technology Terkait Central Bank Digital Currency (CBDC) Terhadap Transmisi Kebijakan Moneter dan Makroekonomi," Departemen Kebijakan Ekonomi dan Moneter Bank Indonesia , Jakarta, 2017.

Bank Indonesia, "Naskah Akademik Rancangan Undang-Undang Tentang Perubahan Harga Rupiah," Bank Indonesia, Jakarta, 2017.

Bank For International Settlements, "Central Bank Digital Currency," March 2018. [Online]. Available: https://www.bis.org/.

R. I. A. G. P. N. A. H. F. A. Z. I. A. F. Bastian Muzbar Zams, "Designing Central Bank Digital Currency For Indonesia : The Delphi-Analytic Network Process," Bulletin of Monetary Economics and Banking, vol. 23, no. 3, pp. 411-438, 2020.

R. R. Muhammad Edhie Purnawan, "Significant Effect of the Central Bank Digital," Jurnal Ekonomi Indonesia, vol. 8, no. 1, pp. 125-151, 2019. B. S. H. T. Ahmet Faruk Aysan, "BLOCKCHAIN FUTURES IN CRYPTOCURRENCIES, TRADE," Bulletin of Monetary Economics and Banking, vol. 23, no. 4, pp. 525-542, 2020.

Statista Research Department, "Transaction Value of Digital Payments in Asia Pacific in 2020, by Country," 2021. [Online]. Available: https://www.statista.com/statistics/1226197/apac-digital-payments-transaction-value-by-country/. [Accessed 7 Agustus 2021]. Statista Research Department, "Aggregate Value of E-Money Transactions in Indonesia from 2011 to 2020," 2021. [Online]. Available: https://www.statista.com/statistics/958171/indonesia-online-transaction-value/. [Accessed 8 Agustus 2021].

Statista Research Department, "Distribution of E-Commerce Payment Methods in Indonesia in 2020," 2021. [Online]. Available: https://www.statista.com/statistics/895544/e-commerce-payment-methods-indonesia/. [Accessed 8 Agustus 2021].

Refbacks

  • There are currently no refbacks.