Indonesian Currency Overview and Evolution

The Indonesian rupiah has a long and fascinating history. It was first introduced in 1946 as a replacement for the Dutch East Indies gulden.

The rupiah was initially pegged to the US dollar, with a fixed exchange rate of 1 USD = 1,625 IDR. This rate remained in place until the 1970s.

In 1978, Indonesia adopted a managed float system, allowing the rupiah to fluctuate against other currencies. This move was a significant step in the country's economic liberalization.

The rupiah has since undergone several devaluations, with the most recent one occurring in 1997 during the Asian financial crisis.

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The Indonesian rupiah has a rich history that spans centuries. The first appearance of banknotes in Indonesia was under the influence of the Dutch through the United East Indies Company in the early 1800s.

The Netherlands Indian gulden banknotes and coinage were used even during the Japanese occupation, when the name of the currency was changed to the "roepiah" in 1943. The country's currency has undergone several changes since then.

The Indonesian rupiah was first issued in October 1946, replacing the Indonesian Dutch East Indies guilder. By January 1947, 310 million rupiahs had already been printed.

Here's a brief overview of the Indonesian rupiah's early denominations:

These early denominations were replaced by new ones in the 1960s, and the rupiah has continued to evolve since then.

During this period, the Indonesian government imposed foreign exchange restrictions to control the flow of capital in and out of the country. The government required all foreign exchange transactions to be approved by the central bank, Bank Indonesia.

The government also restricted the conversion of rupiah into foreign currency, limiting it to only essential transactions. This was done to conserve foreign exchange reserves and prevent capital flight.

In 1953, the government introduced the "Foreign Exchange Control Law", which further tightened controls on foreign exchange transactions. This law prohibited the export of rupiah and restricted the import of foreign currency.

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The government also imposed strict regulations on foreign banks operating in Indonesia, requiring them to obtain a license from Bank Indonesia and to comply with local regulations. This was done to ensure that foreign banks were operating in accordance with Indonesian laws and regulations.

The restrictions on foreign exchange transactions and the regulations on foreign banks had a significant impact on the Indonesian economy, limiting the country's ability to attract foreign investment and trade.

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The nationalization of De Javasche Bank was a significant event in Indonesian history, marking a major shift in the country's monetary system. The Emergency Act of 1951 paved the way for the government to issue its own notes, with the Currency Act of 1953 further solidifying this power.

De Javasche Bank notes dated '1946', which had been circulating since 1950, remained legal tender until 1965, when the new rupiah was introduced. This meant that even though the government was issuing its own notes, the old DJB notes were still accepted as payment.

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The first government notes, known as 'Republik Indonesia' notes, were issued in 1951 and 1953 in denominations of Rp1 and Rp2½. These notes were signed by Sjafruddin Prawiranegara in 1951 and Soemitro Djojohadikoesoemo in 1953.

Here are the details of the first government notes:

The government continued to issue its own notes, with the first series of Bank Indonesia notes being prepared in 1952. These notes were dated 1952 and featured denominations of Rp5, Rp10, Rp25, Rp50, Rp100, Rp500, and Rp1,000.

In 1965, Indonesia issued a new rupiah to replace the old one due to the currency's depreciation. This was a major move to stabilize the economy.

The exchange rate at the time was 1,000 old rupiah for 1 new rupiah. This drastic change was necessary to bring some order to the currency.

Inflation had taken a toll on the economy, and exports were struggling. The new rupiah was designed to address these issues.

By 1970, inflation had fallen, and exports grew. This marked a significant improvement in Indonesia's economic situation.

The 1975/1977 series of Indonesian currency was a significant development in the country's monetary history. Perum Peruri took over the responsibility for printing rupiah notes from Pertjetakan Kebajoran in 1975.

The series was introduced due to counterfeiting of the Sudirman notes, which led to the redesign of the Rp1,000, Rp5,000, and Rp10,000 notes. These redesigned notes were dated 1975 and issued in 1976.

The Sudirman notes of Rp1,000 and above were withdrawn as legal tender as of 1 September 1977. This marked a significant change in the country's currency.

Here's a breakdown of the key features of the 1975/1977 series:

The 1975/1977 series was a significant improvement over its predecessor, with new security features and designs.

The 1979/1980/1982 series of Indonesian currency was a significant update to the country's banknotes. This series replaced the top 10,000 rupiah note in 1979, which was worth around US$16.

The redesigned notes were introduced in all denominations except the 100 rupiah, in 1980 and 1982. The new notes featured updated security features and designs.

Here's a breakdown of the notes in this series:

These notes were printed by Perum Peruri and featured unique designs and security features for each denomination.

The 1992/1993/1995 series of Indonesian currency was a significant overhaul of the country's banknotes. On December 28, 1992, Bank Indonesia completely redesigned all denominations of notes for the first time since 1968.

A new top denomination, the Rp20,000 note, was introduced, worth approximately $10 at the time. This was the first new denomination of the 'new rupiah' since the Rp10,000 had been issued in April 1970.

The new series featured a hologram with the BI's logo as an added security feature on the Rp50,000 note. This was a first for the rupiah, and it was introduced to prevent counterfeiting.

The notes of this series were printed by Perum Peruri and circulated from 1992 to 1998. The denominations included in this series were Rp100, Rp500, Rp1,000, Rp5,000, Rp10,000, Rp20,000, and Rp50,000.

Here's a breakdown of the denominations:

All notes of this series were demonetized on August 21, 2000, except for the banknotes from Rp100 to Rp5,000, which were demonetized on November 30, 2006.

The 1998/1999 series of Indonesian currency was a significant update to the country's bills. In 1998, the Rp10,000 and Rp20,000 notes were redesigned, featuring a latent image that shows the text "BI" when viewed at a certain angle as an added security feature.

The redesign of the Rp10,000 note occurred on January 23, 1998, while the Rp20,000 note was redesigned on February 19, 1998. The new notes carried imprint dates ranging from 1998 to 2005, with the Rp10,000 note being replaced on October 20, 2005, and the Rp20,000 note being replaced on December 29, 2004.

The Rp50,000 note was also redesigned in 1999, with a new design unveiled on June 1, 1999. This note carried imprint dates ranging from 1999 to 2005, with the note being replaced on October 20, 2005.

Here is a summary of the key features of the 1998/1999 series:

The Rp100,000 note was a new addition to the series, introduced on November 1, 1999, with a unique design featuring Sukarno and Mohammad Hatta. This note was the first to be printed on polymer and was ordered from Note Printing Australia.

The Rp1,000 note was first introduced in 2000 and is still in circulation today, although it's worth noting that it's not as commonly used as the Rp1,000 coin.

In 2001, the Rp5,000 note was introduced, and in 2004, the Rp20,000 and Rp100,000 notes were also introduced.

The Rp10,000 note was first introduced in 2005, and a revised version was released in 2010, making it easier to use and more secure.

The Rp50,000 note was also introduced in 2005, and a revised version was released in 2011, featuring new security features to prevent counterfeiting.

By 2008, the old notes issued between 1998 and 1999 were no longer legal tender, but people still had until 2018 to exchange them at Bank Indonesia.

In 1950, the Republik Indonesia Serikat (RIS) government issued new treasury notes, which were printed by Thomas De La Rue. These notes were dated 1 January 1950 and came in denominations of Rp5 and Rp10.

The Rp5 note had dimensions of 136 × 64 mm and a main color of red. It featured a rice field on the reverse side.

The Rp10 note, on the other hand, had a main color of purple. It featured a unique serial number sequence, with "E" over a number between 1 and 19, followed by six numbers.

Both the Rp5 and Rp10 notes were signed by Sjafruddin Prawiranegara, and were issued on 2 June 1950.

The Second Series of Bank Indonesia Notes was introduced in 1958, with the first notes to be brought into circulation being the Rp100 and Rp1,000 notes due to counterfeiting issues.

These notes were designed by Thomas De La Rue and came in denominations of Rp5, Rp10, Rp25, Rp50, Rp100, Rp500, Rp1,000, and Rp5,000.

The series featured various Indonesian animals on the obverse side, such as gibbons, deer, and Sumatran tigers.

The Rp2,500 note was commissioned by Loekman Hakim, the new governor of Bank Indonesia, and was released in 1962.

The notes were printed in various sizes and colors, ranging from 125 × 65 mm for the Rp5 note to 190 × 97 mm for the Rp5,000 note.

The Rp10 and Rp25 notes were only circulated for 3 days, making them extremely rare today.

Here's a list of the notes in the Second Series of Bank Indonesia Notes, showing their dimensions and main colors:

The series was interrupted by a devaluation in 1959, which led to the withdrawal of the Rp500 and Rp1,000 notes.

The first Indonesian-designed notes were issued in 1959, marking a significant milestone in the country's currency history.

These notes, known as the "handicrafts" series, were printed by Pertjetakan Kebajoran, the state printer.

They featured denominations worth Rp5 through Rp100.

The "handicrafts" series was a departure from previous notes, which were designed by foreign companies.

This new series was a proud expression of Indonesian design and craftsmanship.

It's interesting to note that the "handicrafts" series was the first of its kind, setting the stage for future Indonesian-designed notes.

The "handicrafts" series was a reflection of Indonesian culture and artistry.

The notes were issued on 8 September 1959, a date that marked the beginning of a new era in Indonesian currency design.

The Suharto Commemorative Note (1993) was a special issue polymer note worth approximately US$24.15 at the time of its release on 18 February 1993. It was the first polymer note in Indonesia and featured a hologram of then-President Suharto and the phrase "Penerbitan Khusus" (Special Issue).

Only five million of these notes were printed and each was packed in a presentation pack explaining the 25-year growth plan since 1969. They were priced at Rp100,000 upon release, which was double the face value.

The design of the note featured Suharto on the front and Soekarno-Hatta airport on the back, with a plane taking off to symbolise Indonesia's growth. A paper version of the note was later printed from 1993 through 1998.

Here are the key details of the Suharto Commemorative Note (1993):

The 75,000 IDR bill is a special commemorative note issued by the Bank of Indonesia to celebrate 75 years of independence. It was released in 2020 to mark this significant milestone.

The note is a limited edition, with 75 million pieces printed, and features the faces of Indonesia's first president and vice president, Soekarno and Muhammad Hatta. It also includes a picture of a Jakarta MRT1000 series trainset, Trans-Java Toll Road, and Youtefa Bridge on the obverse side.

The reverse side of the note shows children wearing traditional clothing from different parts of Indonesia, along with a picture of the Telkom-4 satellite above the country. This design attracted attention, with some people claiming that one of the children was wearing a traditional costume from China, which Bank Indonesia had to deny.

The 75,000 IDR note is a significant addition to the IDR designs, and its release was an expression of gratitude as well as a symbol of optimism for the country's future.

The fixed rate period of Indonesian currency lasted from 1971 to 1978. During this time, the government maintained an exchange rate of 415 rupiah to the US dollar.

In August 1971, the government set this exchange rate, which they preserved through intervention in the currency market. They bought and sold currency as needed to keep the rate stable.

The fixed exchange rate was maintained despite rising inflation, which peaked at over 40% in 1974. This was largely due to the failure of the rice crop in 1972 and high world rice prices.

The country's oil exports played a crucial role in preserving the exchange rate, which remained at Rp415 until November 15, 1978.

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The Indonesian currency experienced a significant shift in the late 1970s, transitioning from a fixed exchange rate to a managed float by 1978. This change allowed the government to publish the exchange rate daily.

In November 1978, the rupiah was devalued by 33% to 625 rupiah per US dollar. The trade-weighted real effective exchange rate of the rupiah was extremely high at this point, nearly twice as high as it would be in 1995.

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By March 1983, the managed float had only brought an 11% fall in the exchange rate to 702 rupiah per US dollar. Despite this, the rupiah was still overvalued, leading to a trade deficit and falling foreign exchange reserves.

The government responded to these issues by devaluing the currency again on March 30, 1983, by 28% to 970 rupiah per US dollar. This move aimed to boost the balance of trade, but the 1980s oil glut put pressure on the Indonesian economy.

The deregulation of the banking system in June 1983, known as 'Pakjun 1983,' brought about significant changes to the financial system, including the removal of credit ceilings and a more market-based interest rate. Initially, interest rates were set at 18%, but they remained above 15% over the period.

By September 1986, the currency had fallen to 1,134 rupiah per US dollar, maintaining purchasing power over the period. However, the currency was devalued again on September 12, 1986, by 30% to 1,664 rupiah per US dollar, in an attempt to boost the balance of trade.

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The first stage of the crisis in Indonesia was marked by a significant devaluation of the rupiah. This began in July 1997, when the rupiah fell 7% in just one day.

The government's decision to widen the exchange rate band from 8 to 12% on July 11, 1997, was a key event in this stage of the crisis. This move was an attempt to defend the rupiah, but it ultimately failed to boost investor confidence.

The rupiah's value plummeted, with the spot rate falling below the selling rate. This led to a massive sell-off of rupiah, causing the currency to lose 122% of its value in just a few weeks.

The rupiah's fall had a devastating impact on the Indonesian economy. Government debt, measured in Bank Indonesia Certificates or SBI, rose from 12% to 30% in a short period.

The overnight call rate reached a staggering 81% per annum, making it extremely difficult for businesses and individuals to access credit. This further exacerbated the economic downturn.

Money is a fundamental concept that we all use, but have you ever stopped to think about what it actually is? In Indonesia, the official currency is the rupiah, also known as IDR.

The Central Bank of Indonesia is responsible for issuing the rupiah, which has been the sole recognized currency of Indonesia since the 1950s. This means that the bank has the power to control the money supply and set interest rates.

A typical parking fee in Indonesia is 2,000 IDR, which gives you an idea of the value of the currency. You can even get a bottle of water at a market for 5,000 IDR!

The currency code for Indonesia is IDR, but when you're in Indonesia, you'll see the currency symbol Rp used instead of IDR. This symbol is commonly seen on price tags and signs.

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The term "rupiah" comes from the Sanskrit word rupyakam, which translates to silver. This is fitting, given that many Indonesians call the rupiah "Perak", which means silver in Indonesian.

The rupiah was first issued in October 1946, replacing the Indonesian Dutch East Indies guilder. This was a significant change, as the country was a colony of the Netherlands until World War II.

From the late 1940s to the early 1950s, two currencies were circulating on the island of Java: florins, used in areas controlled by the Dutch, and rupiahs, used in Indonesian enclaves. By January 1947, 310 million rupiahs had already been printed.

The IDR became the official currency of Indonesia in 1950, after the Dutch recognized the country's independence. However, the currency depreciated in the 1950s, leading to the introduction of a new rupiah in 1965, with an exchange rate of 1,000 old rupiah for 1 new rupiah.

Here's a brief timeline of the Indonesian rupiah's history:

Since 1999, the rupiah has been relatively stable, despite facing pressure during the financial crisis of 2007-2008. Today, the rupiah is an important part of Indonesian culture and economy, with a wide range of denominations available, from 1,000 to 100,000 rupiah.