RP Indonesian Currency: A Comprehensive Guide

The Indonesian currency, also known as the rupiah, is a vital aspect of traveling and living in Indonesia. It's essential to understand the basics of the rupiah to make the most of your trip.

The rupiah is the official currency of Indonesia, and its symbol is IDR. It's divided into 1,000 smaller units called sen, but sen is no longer in use in everyday transactions.

In Indonesia, you can exchange your money for rupiah at currency exchange offices, banks, or use an ATM to withdraw cash. Credit cards are also widely accepted in tourist areas and major cities.

The rupiah comes in various denominations, including coins and banknotes. Coins are available in 1,000, 2,000, 5,000, and 10,000 rupiah, while banknotes are available in 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 rupiah.

The term "rupiah" originates from the Sanskrit word rupyakam, which translates to silver, and has been used in various forms of currency, including the Indian rupee and Nepalese rupee. The rupiah was first issued in October 1946, replacing the Indonesian Dutch East Indies guilder.

In its early years, the rupiah faced challenges, including the circulation of two currencies on the island of Java, the florin and the rupiah, which were used in areas controlled by the Dutch and Indonesian enclaves, respectively. By January 1947, 310 million rupiahs had already been printed.

Here are some key dates in the history of the rupiah:

The rupiah has undergone several devaluations, including a 33% devaluation in 1978, a 28% devaluation in 1983, and a 30% devaluation in 1986. These devaluations have helped boost the competitiveness of Indonesia's exports.

The Indonesian government imposed foreign exchange restrictions in 1949 to manage the flow of foreign currencies and prevent capital flight.

In 1950, the government introduced the "Law on Foreign Exchange" which prohibited the use of foreign currencies for domestic transactions.

The restrictions were aimed at encouraging the use of the rupiah for domestic transactions and reducing the country's reliance on foreign currencies.

These restrictions led to a significant increase in the use of the rupiah for domestic transactions.

The government also introduced a system of exchange rates to manage the value of the rupiah against foreign currencies.

The exchange rates were initially set at a fixed rate, but later became more flexible to allow for market forces to determine the value of the rupiah.

In 1958, the government introduced a system of import and export licenses to manage the flow of foreign currencies into and out of the country.

The restrictions were gradually relaxed in the early 1960s as the Indonesian economy began to grow and stabilize.

By 1965, the foreign exchange restrictions had been largely lifted, and the rupiah was being used freely for domestic and international transactions.

In 1966, Indonesia's economy was on the brink of collapse, with inflation soaring to 635% and exports plummeting by 24% in the preceding years.

The introduction of the "new rupiah" in late 1965 marked a significant shift, with the official exchange rate set at Rp0.25 to US$1 as of 13 December 1965.

Suharto's emergence as executive control of Indonesia in March 1966 brought about a new era of economic change.

The Berkeley Mafia, a team of US-educated neoclassical economists, played a crucial role in shaping Indonesia's economic policy, which began to take shape in November 1966.

Economic policies were put in place to require adequate bank reserves, end subsidies on consumer goods, and devalue the rupiah.

By 1971, inflation had fallen to just 2%, a remarkable turnaround from the 635% seen in 1965.

The 1966-1970 stabilisation program led to higher economic growth, with legal exports growing 70% in US$ terms over the period.

A more realistic exchange rate was finally established in April 1970, with 378 new rupiah equal to US$1.

The fixed rate period of the rupiah, which lasted from 1971 to 1978, was a time of government intervention in the currency market to maintain a stable exchange rate of 415 rupiah to the US dollar.

During this period, the government bought and sold currency as needed to preserve the fixed exchange rate. The exchange rate was essentially preserved using the country's oil exports.

The failure of the rice crop in 1972 led to rising inflation, which peaked at over 40% in 1974. Inflation rose above 20% in 1972.

Lax credit controls led to a sharp increase in the M1 money supply, which was channeled towards favoured groups, such as pribumi, as well as corrupt government-linked businesses.

The fixed exchange rate was maintained until 15 November 1978.

The Managed Float Period 1978-1997 was a significant time for the Indonesian economy, marked by a series of devaluations that aimed to boost the competitiveness of exports.

The first devaluation occurred in 1978, when the rupiah was devalued 33% to Rp. 625 to US$1, despite prices having increased nearly fourfold over the period.

Between 1978 and 1986, the real exchange rate of the Indonesian rupiah fell by more than 50%, providing significant boosts to the competitiveness of Indonesia's exports.

The government responded to the continued overvaluation of the rupiah by devaluing the currency on 30 March 1983, by 28% to Rp970, and again on 12 September 1986, by 30% to 1,664 rupiah to US$1.

By September 1986, the currency had been allowed to steadily fall to 1,134 rupiah, a rate which had largely maintained purchasing power over the period.

Despite this, the currency was devalued 30% on 12 September 1986 to 1,664 rupiah to US$1, which had been intended to boost the balance of trade.

The rupiah maintained near-constant purchasing power against the dollar until the 1997 crisis, the steady fall of the rupiah against the dollar essentially representing the difference between Indonesian inflation and US inflation.

By June 1997, the rupiah had fallen from its post-evaluation rate of Rp1,664 to Rp2,350, an annualized decline slightly over 3%.

The Asian Financial Crisis of 1997-1999 was a significant turning point in the history of the rupiah. The crisis began in Thailand in May 1997, where the government struggled to maintain the Thai baht peg.

Thailand abandoned its defence of the baht in July 1997, and Indonesia, which had massive foreign reserves, responded by widening its exchange rate band from 8 to 12%. The rupiah immediately fell 7%, with foreign money quickly leaving the country.

Investor confidence in Indonesia was shaken, and the population followed suit, selling rupiah for dollars. The spot rate soon fell below the selling rate, and BI attempted to intervene but eventually abandoned the managed float on 14 August 1997.

The rupiah–dollar rate fell from Rp2,436 to one dollar on 11 July to Rp2,663 by 14 August and Rp2,955 by 15 August – a 122% fall. Government debt rose from 12% to 30%, and overnight call rates reached 81% (per annum).

The catastrophic damage to the rupiah caused in 1997-1998 severely damaged confidence in the currency. The rupiah is still regarded as a risky currency to hold, and as of September 2018, it had fallen to its weakest position since the 1998 crisis.

By March 2020, the rupiah had fallen even further to nearly Rp. 16,650, nearly reaching the 1998 crisis value. However, it recovered as the year progressed, only to fall again to the Rp 16,000 level in April 2024.

In 1965, Indonesia issued a new rupiah to replace the old one, which had depreciated significantly. This move was an attempt to stabilize the currency.

The exchange rate was set at 1,000 old rupiah for 1 new rupiah, a drastic change that aimed to bring some order to the economy.

The nationalisation of De Javasche Bank was a significant event in the history of Rupiah. This process began with the Emergency Act of 1951, which allowed the government to issue its own notes. The government took advantage of this opportunity and issued 'Republik Indonesia' notes dated 1951 and 1953.

These new notes were signed by Sjafruddin Prawiranegara in 1951 and Soemitro Djojohadikoesoemo in 1953. The notes were valued at Rp1 and Rp2½, and were printed by the Security Banknote Printing Company in the USA.

The nationalisation of De Javasche Bank had a direct impact on the existing DJB notes. The 1000 gulden '1946' note dating from 1950 was withdrawn on 5 March 1959, due to rampant counterfeiting. This note was one of the first to be withdrawn, and it was a significant step towards the eventual replacement of all old money.

The government also withdrew the Rp1 and Rp2½ '1948' DJB notes on 1 December 1957. This was because these denominations of notes were the issuing privilege of the government under the 1914 Currency Act, and De Javasche Bank had lacked the authority for their issue.

Here's a summary of the key dates related to the nationalisation of De Javasche Bank:

The Indonesian Federal Republic Notes of 1950 were a short-lived but fascinating chapter in the history of Rupiah. These notes were printed by Thomas De La Rue and dated 1 January 1950.

The RIS government passed legislation on 2 June 1950 to issue new treasury notes, which were printed in denominations of Rp5 and Rp10.

These notes had distinctive features, including red and purple colors for the Rp5 and Rp10 denominations, respectively.

The Rp5 note measured 136 × 64 mm and had a red main color, while the Rp10 note measured the same size but had a purple main color.

The Rp5 note featured a rice field on the reverse side, and the Rp10 note had a similar design.

Here's a breakdown of the key features of the 1950 'Republik Indonesia Serikat' Notes:

The notes were signed by Sjafruddin Prawiranegara, and the serial number was a combination of a letter ("D" for Rp5 and "E" for Rp10) over a number between 1 and 10/19, followed by six numbers.

The first ever notes issued by Bank Indonesia were introduced in 1953, featuring the new name of the nationalized De Javasche Bank. These notes were prepared in 1952 in denominations of Rp5, Rp10, Rp25, Rp50, Rp100, Rp500, and Rp1,000.

The notes were signed by Indra Kasoema as Director and Sjafruddin Prawiranegara as Governor. The notes began circulating from July 1953 to November 1954 depending on denomination.

The Rp5 note had a blue color, measured 135 × 75 mm, and featured Ibu Kartini on the obverse. It had a floral design and serpents on the reverse.

Here's a summary of the 1952 Bank Indonesia notes:

These notes were issued to replace the old "Nederlandsch Indie" government money, which was withdrawn on 1 January 1954, and the Rp0.10 and Rp0.25 "Indonesia" "1947" notes, which were withdrawn on 1 January 1957.

Bank Indonesia's Second Animal Series (1958–1959) was a notable milestone in the history of the Indonesian currency. This series was commissioned by Governor Sjafruddin Prawiranegara in 1957, but due to his involvement with PRRI, he was replaced by Governor Loekman Hakim in January 1958.

The series featured notes with denominations of Rp5, Rp10, Rp25, Rp50, Rp100, Rp500, Rp1,000, and Rp5,000, with the first two to be brought into circulation being the Rp100 and Rp1,000 notes in 1958. These notes were designed to combat counterfeiting, with a wavy line watermark being printed onto the paper rather than a true watermark.

The series was printed by Thomas De La Rue and featured various animals, including gibbons, deer, and Sumatran tigers. Each note had a unique design, with the Rp5 note featuring a gibbon and the Rp10 note featuring a deer.

Here's a breakdown of the denominations in the series:

The series was interrupted by a devaluation in August 1959, which led to the devaluation of the Rp500 and Rp1,000 notes to Rp50 and Rp100 respectively. The Rp2,500 and Rp5,000 notes were deemed unnecessary as a result, although the former denomination was later reissued in 1962.

The Suharto Commemorative Note (1993) was a unique polymer note issued to celebrate 25 years of development under the New Order. It was the first polymer note in Indonesia, featuring a hologram of then-President Suharto and the phrase "Penerbitan Khusus" (Special Issue).

The note was worth approximately US$24.15 at the time of its release on 18 February 1993, with an exchange rate of Rp2,070 per 1 US dollar. The design featured Suharto on the front and Soekarno-Hatta airport on the back, with a plane taking off to symbolise Indonesia's growth.

The note had a face value of Rp50,000, but was priced at Rp100,000 upon release, which was double the face value. It was printed by Note Printing Australia and only five million notes were printed, each packed in a presentation pack explaining the 25-year growth plan since 1969.

Here are the key specifications of the note:

The note was a special issue, but due to poor sales, some of the polymer notes were issued as regularly circulating money.

The 75th Anniversary of Independence Note was a special commemorative banknote issued by Bank Indonesia to celebrate 75 years of Indonesia's independence. It was valued at Rp75,000, which was equivalent to $5 at the time of its release.

The note was designed with a red and white theme, and its design attracted attention, with some people thinking the traditional costumes worn by the children on the back were from China. Bank Indonesia had to deny this rumor.

The note featured the faces of Indonesia's first president, Sukarno, and vice president, Mohammad Hatta, on the obverse, along with a picture of a Jakarta MRT1000 series trainset, Trans-Java Toll Road, and Youtefa Bridge.

A total of 75 million notes were printed, and they were made available for purchase by Indonesian citizens over the age of 17, who could register online and collect them at one of the 45 regional Bank Indonesia branches.

Here are the key specifications of the 75th Anniversary of Independence Note:

Due to high demand, the notes were offered for sale online for prices up to Rp8.8 million, more than 117 times its face value.

The rupiah's name comes from the Sanskrit word rupyakam, which translates to silver. This is also the origin of the name for other currencies like the Indian rupee and Nepalese rupee.

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

In 1950, the IDR became the official currency of Indonesia after the Dutch recognized the country's independence. This marked a significant milestone in the country's history.

The rupiah has undergone several devaluations over the years, including a 33% devaluation in 1978 and a 30% devaluation in 1986. These devaluations were aimed at boosting the balance of trade and making Indonesian exports more competitive.

Here are some key dates in the rupiah's history:

The rupiah has also seen periods of stability, particularly since 1999 when it started to float freely. However, it has faced challenges during times of economic crisis, such as the Asian financial crisis and the 2007-2008 financial crisis.

The Bank of Indonesia has taken steps to stabilize the currency, including introducing new regulations and providing support during times of crisis.

The Indonesian rupiah has a rich history, but let's dive into some interesting facts that'll give you a better understanding of this currency.

The Indonesian rupiah has some unique characteristics, including vibrant banknotes with distinct colors. The 20,000 IDR banknote is light green, the 50,000 IDR banknote is bright blue, and the 100,000 IDR note is red.

The two smallest bills, 1,000 IDR and 2,000 IDR, are less vivid, with the 1,000 IDR note being yellow-gray and the 2,000 IDR note being gray.

The Indonesian rupiah has undergone significant changes over the years, reflecting the country's rich history and cultural heritage. The designs on the currency have evolved to feature national heroes, cultural scenes, and famous landmarks.

The value of the rupiah has fluctuated, leading to changes in the designs of the currency. For example, the 5,000 IDR bill issued in 2001 featured Tuanku Imam Bondjol, a national hero.

On the reverse side of the 5,000 IDR bill, an image of women weaving was displayed.

Redenomination is a proposal that has been floating around for a while, and it involves getting rid of the last three zeroes from the rupiah.

Bank Indonesia has been pushing for this since 2010, saying it would make transactions easier to handle. They've repeatedly urged the government to consider it, but so far, there's been no formal decision.

The government did submit a bill to the House of Representatives in 2015, but it hasn't been discussed yet. That's a bit puzzling, considering the potential benefits of redenomination.

Bank Indonesia Governor Agus Martowardojo brought it up again in 2017, saying that if they started right away, they could finish the process by 2024 or 2025.

In 1954, the Indonesian government redesigned its Rp1 and Rp2½ notes, which were later re-dated with the new Minister of Finance's signature in 1956.

These notes, printed by Pertjetakan Kebajoran, featured ethnic people on the obverse side. The Rp1 note measured 130 × 60 mm and was predominantly blue in color, while the Rp2½ note had a red and green design.

The Javanese girl was depicted on the Rp1 note, while a Rotinese man was shown on the Rp2½ note. These images were used to represent the country's diverse cultural heritage.

The Rp1 note had a serial number of 3 letters and 6 numbers, and was signed by Ong Eng Die. It was later replaced in 1960.

The Rp2½ note also had a serial number of 3 letters and 6 numbers, and was signed by Ong Eng Die in 1954, and later by Jusuf Wibisono in 1956.

In 1960, a new design for government banknotes was introduced in Indonesia, featuring an agriculture theme. This design update was a significant change for the country's currency.

The new design was printed by Pertjetakan Kebajoran and featured a unique serial number system, with 3 letters and 6 numbers. The notes also had a distinctive watermark.

The Rp1 note was 120 × 60 mm in size and had a green and yellow color scheme, depicting rice farmers on the obverse and vegetables on the reverse. The Rp2½ note was blue and featured corn farmers on the obverse and corn and paddy on the reverse.

The notes were signed by Finance Minister Ir. Djuanda Kartawidjaja in 1960 and Finance Minister Raden Murobikandi Notohamiprojo in 1961. The issue dates for these notes were "1960" and "1961", respectively.

Here's a summary of the new design for government banknotes:

The 1975/1977 series of rupiah notes was a significant development in the evolution of Indonesian currency. Perum Peruri took over the responsibility for printing these notes from Pertjetakan Kebajoran in 1975.

These notes were designed to combat counterfeiting, with the Rp1,000, Rp5,000, and Rp10,000 notes being re-designed and issued in 1976. The Sudirman notes of Rp1,000 and above were withdrawn as legal tender by 1 September 1977.

Perum Peruri printed these notes, which featured various designs and colors. The Rp100 note, for example, had a pink color and featured a Javan rhinoceros on the obverse.

The dimensions and colors of the notes varied, as seen in the table below:

The issue dates and withdrawal dates for these notes also varied, with some notes being withdrawn earlier than others.

The 1979/1980/1982 series of banknotes was a significant update to Indonesia's currency, replacing older denominations with new designs and security features.

The first note to be replaced was the Rp10,000 note, which was worth approximately US$16 at the time and was redesigned in 1979.

The new series featured notes in various denominations, including Rp500, Rp1,000, Rp5,000, and Rp10,000, each with its own unique design and security features.

The Rp500 note, for example, measured 140 × 68 mm and featured a green background with a titan arum design on the obverse and a Bank Indonesia building on the reverse.

Here's a breakdown of the key features of each denomination:

These new banknotes were designed to be more secure and easier to use, with features like watermarks and signature panels to prevent counterfeiting.

The 1992/1993/1995 series of Indonesian currency was a major overhaul of the country's notes. This series was introduced on December 28, 1992, and featured a new top denomination, the Rp20,000 note, which was worth approximately $10 at the time.

The series included a range of denominations, from Rp100 to Rp50,000, each with its own unique design and security features. For example, the Rp50,000 note featured a hologram with the BI's logo as an added security feature.

Here's a brief overview of the denominations in this series:

The series was demonetised on August 21, 2000, except for the banknotes from Rp100 to Rp5000, which were demonetised on November 30, 2006.

Currency rankings can be a crucial factor in your financial decisions, especially when it comes to international transactions. Keeping an eye on current rates can help you time transfers wisely.

The exchange rate varies based on the state of the Indonesian and global economy, making it essential to stay informed. This means that you can make the most of your money by transferring funds during favorable exchange rates.

In Indonesia, for example, a low IDR value compared to a foreign currency like the US dollar can be a great time to make a transfer. Your US dollars will go further, giving you more purchasing power.

A good rule of thumb is to keep an eye on currency rankings and make transfers when the IDR is low. This can save you money and help you achieve your financial goals.