Dollarising Indonesia

The rupiah's record of instability, both recently and over the long term, s uggests it is worthwhile to investigate options for radical monetary reform . An option currently receiving attention elsewhere is official dollarisati on, under which a country ceases to issue a domestic currency and makes a f oreign currency its official currency This paper discusses the costs and be nefits of dollarisation in Indonesia, the steps involved in dollarisation, and some economic and political implications of dollarisation.