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Bring Currency Reform or Redenomination to Currency Value Reorientation PDF Print

Is a logical consequence of the currency continued to experience zero inflation will continue to increase it from time to time. For the amount, three zeros are never removed with difficulty in 1965/1966 through what is known as Rupiah Reform, three zeros are 32 years later returned the money to meet our numbers tend to be not enough even the return of three zeros, but instead to four or even five zeros. Want proof?, Look at your wallet - most likely only a money with four or five zeros are there in your wallet - because the zeros are only three possibilities have to pay to park, enter donation boxes.

As a result of increasing the number zero continuously, periodically necessary authority to take bold decisions to reset back to zero numbers are back to the original amount. This reset process can be through Currency Reform if the economy broke down, or through the process if the economy is stable by using Redenomination. The first (Currency Reform) along with the decreasing purchasing power through the withholding of value, the second (Redenomination) just listing some of its zeros are removed while the purchasing power of people should not be changed.

Both processes create panic, painful, confusing and all sorts of consequences - but my own view it should be done boldly and quickly. When protracted, it will create confusion and uncertainty that long. When we shut our eyes, precisely zero numbers could continue to grow it will linger and haunt us all the hassle.

When done with the bold and rapid; the pain will be quick - but after that we'll be glad you have gone through such painful periods. Imagine if in 1965 (implemented until 1966) the government of this country can not take decisions Currency Reform - Indonesia may never be built - and can you imagine how many zeros our money now?.

Similarly, if the authorities did not dare to take a decision now to implement this Redenomination process; how many zeros our money at the time of your newborn child to college now eighteen years to come?. So Redenomination remains to be done, just the problem of when and who is willing to take unpopular but necessary decision this. I know quite well (Acting) Governor of BI is now and I really hope that he dared to do so, because if not then what happens is to let these ghosts Redenomination protracted next to the officials, then the next official ff.

When Redenomination not done, the irony that occurs as we experience today will continue. Irony as the average Indonesian population can literally called 'Millionaire' (Millionaire) because our per capita GDP reached more than USD 24,000,000 / year, but the average 'Millionaire' was the poor by the standards of Islam - because the value of USD 24,000,000, - this is only equivalent to approximately 16:50 Dinar or not achieving the 20 Dinar nishab charity.

When the decision Redenomination really implemented, which need to be prepared by the society is a process of reorientation of values. Why is this process necessary?, Here I give the illustrations.

I've heard complaints bellman at the country's tourist areas visited by many foreign tourists. When they deliver the order room service, tips are often given only Rp 1.000, - or even a coin USD 500, -. The same thing happened to the driver, the foreign tourists who collect rare not change even if the return is only Rp 1.000, - or even USD 500, -.

Why the stinky impression few foreign tourists occurs?; This is a problem that the value reorientation. Although before coming to Indonesia, they've learned the numbers on our money and their conversion to value for their money; In their Value Orientation, they still claimed that the rate of 1.000 or 500 is a number that big. Because when paying and collecting tips for the change, their brains do not always have time to convert the value to figure the correct value - then that is what happens, the value of tips only Rp 1.000, and the change in coins cab-was asked.

This also happens on Redenomination process, the orientation of the brain we have been accustomed to big numbers. When the figures were turned into small, we must train our brain to get used to the numbers into this small. It seems easy, but because this must happen in bulk for all users Rupiah - it needs an effective socialization.

What are the implications if the Reorientation of the value has not been effective?, Prices can be chaotic. For example the usual spinach seller builders sell a bunch of spinach USD 2.500, -. Rupiah new figures should be USD 2.5, - but in the seller mind states that the rate of Rp 2.5 is too small, then increase the spinach price increased to USD $ 3, -. Without knowing you as a buyer-response any number of Rp 3 is acceptable because it's easier to pay - and seemed small by you. So what happens is in fact 20% of the price inflation spinach.

So both producers, traders must familiarize consumers to return accurate automatic response to price or value of the goods fair - this is what I mean Reorientation.

This is where the real advantages and truth that Islam can be proven by clear. We do not need to lose orientation in any respect and at any time - because his guide, direction, standard values applicable to all times. Like praying that we do not need to ask where it is facing, we know where our lives are and where the Ka’bah is - then all the people agree we where we are facing to.

Similarly, in terms of value, we can easily and clearly with scales that never change for anyone considering a rich and who is poor with a 20 Dinar nishab charity. The rich should pay Zakaa, the poor are entitled to receive Zakaa - what a mess these rights and obligations are necessary if the value of nishab is to be Currency Reform or Redenomination from time to time.

So I suppose no matter, I wish the existing authorities dare to use the unit as a unit of at least Dinar account or the scales of justice - the generations that will come and governors of central banks that will come until the Day of Judgement will be grateful - how easy their job because they do not need anymore from time to time to take decisions very, very difficult as Redenomination this amount.

Dinar Once used, the value / purchasing power is stable - 1 Dinar one goat remained until the end of time, it will no longer have needed or even Currency Reform Redenomination. When this happens the Reorientation also will not need to be done again.

 
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