Redenomination, Power, and Legitimacy: A Political Discourse Analysis of Indonesian Currency Reform

Abstract

Redenomination is generally understood as a monetary policy aimed at simplifying the nominal currency without altering its real value. This study argues that in the context of Indonesia, redenomination is not only related to economic aspects but also becomes part of discursive practices that reflect power relations and the state's efforts at legitimacy. The research employs Fairclough's Critical Discourse Analysis model combined with Gramsci's concept of hegemony and Bourdieu's symbolic power. Data were obtained from official government speeches, statements by the Minister of Finance and the Governor of Bank Indonesia, policy documents, and media coverage nationwide from 2010 to 2025. The findings indicate that the discourse of redenomination is constructed through a narrative of caution emphasising economic, political, and social stability, supported by technocratic terms such as efficiency, stability, and modernisation. This discourse tends to strengthen when the rupiah faces pressure and diminishes when economic conditions improve. These findings suggest that the state shapes public expectations through a stability narrative as a hegemonic mechanism in managing change.