What is the Currency in Indonesia?

Indonesia, a country that’s as diverse as it is beautiful, beckons travellers with its rich culture, stunning landscapes, and, of course, Bali’s famed beaches. But before you dive into those azure waters or trek through lush jungles, there’s one small but crucial detail to get your head around: money. Specifically, what is the currency in Indonesia?

In this guide, we’ll explore everything you need to know about the Indonesian rupiah—its value compared to the British pound, its denominations, and whether cash or card is the better option while you’re there. We’ll even sprinkle in a bit of history, because who doesn’t love a good backstory? By the end, you’ll be fully equipped to handle your finances as you explore this incredible archipelago.

Currency in Indonesia

So, let’s get to the heart of the matter: the currency in Indonesia. The official currency is the rupiah, often abbreviated to Rp. Its currency code is IDR. As of today, the Indonesian rupiah is the only legal tender in the country, and it’s what you’ll be using to pay for everything from street food to souvenirs.

One of the first things you’ll notice is that the rupiah comes with a lot of zeros. Don’t be alarmed! It’s quite common to see prices in the thousands, tens of thousands, or even hundreds of thousands. The exchange rate between the Indonesian rupiah and the British pound can fluctuate, but as of August 2024, £1 typically exchanges for around Rp18,000 to Rp20,000. So, yes, you’ll feel like a millionaire, even if it’s just on paper.

Indonesian Rupiah Denominations

Now, let’s break down the denominations of the Indonesian rupiah so you know exactly what to expect when you start handling the cash. The currency comes in both banknotes and coins, each with its own distinct design and value.

Banknotes

Rp1,000: The smallest note in circulation, often used for minor transactions or tips.

Rp2,000: Another low-value note, handy for small purchases.

Rp5,000: Good for a quick snack or a drink.

Rp10,000: A commonly used note for everyday expenses.

Rp20,000: Ideal for more substantial purchases, like meals or transport.

Rp50,000: One of the most frequently used notes, often for bigger purchases.

Rp100,000: The highest denomination, equivalent to about £5, so don’t be shocked if you’re handed a lot of these.

Coins

Rp100

Rp200

Rp500

Rp1,000

Each of these notes and coins features important figures, landmarks, or symbols significant to Indonesia’s history and culture, making them not just currency, but a little piece of the country’s heritage in your hands.

Should I Use Cash or Card in Indonesia?

When it comes to spending in Indonesia, it’s essential to know when to whip out the cash and when to reach for your card. Here’s the lowdown.

Cash

Indonesia remains a largely cash-based society, especially outside major cities and tourist hubs. While credit and debit cards are widely accepted in hotels, large restaurants, and shops in places like Jakarta, Bali, and Yogyakarta, you’ll need cash for almost everything else—think market shopping, street food, and local transport.

It’s always a good idea to carry smaller notes and coins, as many smaller vendors might not have enough change for larger denominations. Also, tipping is common practice, particularly in the service industry, so having cash on hand is a must.

Card

Credit and debit cards are handy, but there’s a catch—transaction fees. If you choose to pay in GBP rather than IDR, you could be hit with higher fees due to dynamic currency conversion, so it’s usually better to stick with IDR for payments.

That said, cards are a convenient option for larger purchases or in more touristy areas. Just be aware that not every place will accept cards, especially in more rural or off-the-beaten-path locations.

ATMs in Indonesia

ATMs are your friend in Indonesia—widely available in cities and tourist hotspots, they’re a reliable source for withdrawing cash. Just be mindful of the withdrawal limits, which can vary depending on your bank and the local ATM policies.

One thing to watch out for, some ATMs in Indonesia charge a withdrawal fee, which can add up if you’re making frequent trips to the machine. It’s also worth noting that ATMs in more remote areas might run out of cash, so it’s always a good idea to withdraw a sufficient amount when you’re in town.

History of the Indonesian Rupiah

Money doesn’t just grow on trees—unless you’re talking about the spice trade that once made Indonesia the “Spice Islands,” but that’s a story for another time. The Indonesian rupiah has a rich history that’s as colourful as the country itself.

Pre-WWII

Before the introduction of the rupiah, Indonesia’s currency landscape was a bit of a mixed bag. The Dutch, who colonised Indonesia, introduced the gulden (or guilder) as the official currency. However, during World War II, Japan occupied Indonesia and replaced the gulden with their own currency. This led to significant inflation and economic instability, setting the stage for the birth of a new currency.

Indonesian Independence

After Indonesia declared its independence in 1945, the need for a new, stable currency became apparent. The first official rupiah was introduced in 1946, although the currency went through several iterations and reforms over the following decades as the country grappled with economic challenges, including hyperinflation.

The modern rupiah, as we know it today, was introduced in 1965 after a major devaluation to combat inflation. The currency was redenominated, with 1 new rupiah equating to 1,000 old rupiahs. Since then, the rupiah has remained the official currency of Indonesia, symbolising the nation’s economic sovereignty and resilience.

Indonesian Rupiah Exchange Rate

The Indonesian rupiah exchange rate has seen its fair share of fluctuations over the years. The value of the rupiah compared to other currencies like the British pound, Malaysian ringgit, UAE dirham, Chinese renminbi, and Australian dollar can vary significantly due to factors like economic conditions, political stability, and global market trends.

For example, while the rupiah is generally weaker than the pound, making Indonesia an affordable destination for UK travellers, it’s essential to keep an eye on the exchange rate to ensure you’re getting the best value for your money. In August 2024 £1 typically exchanges for around Rp18,000 to Rp20,000, but it’s wise to check the latest rates before you exchange your cash.

If you’re planning a trip to Indonesia, it’s also worth noting that the rupiah’s exchange rate can be more volatile compared to currencies like the euro or US dollar. This means that timing your currency exchange can make a noticeable difference in how much spending money you’ll have on your trip.

For the latest exchange rates and to convert your British pounds to Indonesian rupiah, click here.

Where to Get Indonesian Rupiah

So, now that you know all about the currency, where can you get your hands on some Indonesian rupiah before your big adventure? Fortunately, Travelex makes it easy.

You can buy your rupiah online through Travelex, either for home delivery or to collect at your nearest Travelex store. This way, you can arrive in Indonesia with cash in hand, ready to start your holiday without the stress of finding an exchange bureau after a long flight.

Travelex offers competitive exchange rates with no commission, so you can rest assured that you’re getting a good deal. Plus, with the convenience of ordering online, you can sort out your travel money without leaving the comfort of your home.

Ready to Buy Some Rupiah?

Your Indonesian adventure is just around the corner, so why not get ahead of the game and order your Indonesian rupiah today? Whether you prefer home delivery or picking up your currency at a Travelex store, we’ve got you covered.

With competitive exchange rates and no commission, Travelex is the currency expert you can trust. So, don’t wait—buy your Indonesian rupiah now and start counting down the days until you’re sipping on that fresh coconut by the beach!