What is the Currency in Indonesia?

What is the Currency in Indonesia?

If you're travelling to Indonesia or sending money there, it's important to understand how the local currency works. This guide is for UK travellers and anyone dealing with payments or purchases in Indonesia. It outlines what the official currency is, how it functions, and how to handle money confidently during your trip.

What is the official currency of Indonesia?

The official currency of Indonesia is the Indonesian Rupiah, abbreviated as IDR and often represented by the symbol Rp. It is the only legal tender accepted across Indonesia, including popular destinations like Bali, Jakarta, Lombok, and Yogyakarta.

All local transactions—whether you're buying a coffee, booking a tour, or shopping in markets—must be paid for in rupiah.

How is the Indonesian rupiah structured?

The rupiah is a decimal currency, divided into 100 sen, though sen coins are no longer used due to their low value. Today, you’ll primarily deal with banknotes, which come in the following denominations:

• Rp 1,000, Rp 2,000, Rp 5,000, Rp 10,000, Rp 20,000, Rp 50,000 and Rp 100,000

Coins of Rp 100, Rp 200, Rp 500 and Rp 1,000 also exist, but they are used less frequently, particularly in tourist transactions.

Because of inflation and the low value of the currency, you’ll notice that even small items can cost thousands of rupiah. For example, Rp 100,000 might only be worth around £5–£6, depending on the exchange rate.

Can you use foreign currencies in Indonesia?

No. The Indonesian rupiah is the only legal currency in Indonesia. While some high-end hotels and tour operators may quote prices in US dollars, they are legally required to complete transactions in rupiah.

If you pay in foreign currency, you may be charged a poor conversion rate or even face confusion or rejection. It’s best to always use IDR for purchases, especially outside major tourist hubs.

Is Indonesia a cash-based or card-friendly country?

Indonesia remains largely cash-based, particularly in local shops, markets and rural areas. That said, card payments are becoming more common in cities and tourist resorts, especially in hotels, international restaurants and shopping centres.

Visa and Mastercard are the most widely accepted cards, though not every business has a card machine. UK travellers are advised to carry cash and use cards where available—ideally through a travel-friendly bank card such as Monzo, Starling or Revolut, which offer fee-free foreign transactions.

Where and how to exchange money

It’s usually better to exchange money after arriving in Indonesia, as rates in the UK tend to be less favourable. You’ll find money changers at airports, hotels, and throughout tourist areas. However, always use authorised, reputable exchange offices to avoid scams or counterfeit notes.

Alternatively, you can withdraw cash from ATMs, which are widely available in urban and tourist areas. Be aware of ATM withdrawal fees and check with your UK bank for any extra charges.

Tips for handling money in Indonesia

• Break larger notes (like Rp 100,000) into smaller ones for everyday use

• Carry cash when visiting markets, local warungs (eateries), and small towns

• Avoid exchanging money on the street—stick to licenced money changers

• Use ATMs attached to major banks for increased security

• Be cautious when tipping; although not mandatory, it’s appreciated. Rounding up or tipping Rp 10,000–20,000 is common in restaurants and for service staff

Common mistakes to avoid

One common error is assuming Bali or tourist hotspots accept US dollars or other foreign currencies—this is not legally permitted and may lead to poor value transactions. Also, be mindful not to confuse rupiah values due to the high number of zeros—double-check your notes and receipts.

Another mistake is relying solely on your UK bank card, which may not be accepted everywhere or could attract high foreign transaction fees. It’s always smart to have a backup payment method and cash on hand.

In summary

The official currency in Indonesia is the Indonesian Rupiah (IDR). While card payments are increasing, cash remains essential for most day-to-day purchases. UK travellers can manage their money efficiently by exchanging cash locally, using low-fee bank cards, and always paying in rupiah to avoid poor conversion rates or payment issues.