Redenomination of the rupiah could be a signal of economic modernization, but the risks are real. If the public is not ready, nominal changes could create an illusion of new prices โ triggering psychological inflation that gradually erodes purchasing power.
For foreign investors, this step can be read in two ways: a chance for long-term stability, or a sign of an immature market. The success of redenomination is not in the numbers, but in the trust โ how confident the public and investors are that this policy reflects strength, not weakness.
> The value of money can be changed, but trust cannot be replicated.
