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Indonesia Rupiah

The rupiah is the official currency used in the Republic of Indonesia.  The currency is issued by the Bank of Indonesia and each rupiah is further divided into 100 sen (similar to cents).  In some ways, this is purely hypothetical.  Due to inflation which seems to be 'stuck' at around 10%, the sen has long since ceased to be used.

The currency is derived from and based on the Indian rupee which is a very similar currency to the rupiah.  The currency is denoted internally by the letters Rp, from both rupee and rupiah and on the international markets, it is signified by the letters IDR.

It is available as both notes and coins and the coins are issued in the following denominations: 25, 50, 100, 200 and 500 Rp.  The 25 and 50 Rps are rarely seen in circulation (again due to inflation).  Notes come in the form of 1,000, 5,000, 10,000, 20,000, 50,000 and 100,000.  (This gives an indication of just how extensive the problem of inflation really is).

History of the Rupiah

The rupiah first came into existence in the year 1946, when it was launched as part of the new Republic of Indonesia.  Prior to this the Japanese had invaded and occupied Indonesia and Japanese money had been in circulation as well as Nica money, which was the Netherlands Indies Civil Administration and the currency that they issued.

In some ways this typifies Indonesia and the struggle it had for independence: not only was it opposed to the West i.e. the Netherlands, but also the East, with Japan's invasion being strongly resented.

However, in 1946, the advent of the new currency, independent of both the Dutch and the Japanese was seen as a new start and one that was symbolically important.  And so the rupiah was born and has been in existence ever since, despite devaluation and now the current problem of inflation.

Getting Hold of Rupiahs

There are plenty of ATM facilities throughout Indonesia, particularly in the capital Jakarta, so you should be able to get money out without any problem.  The main difficulty you may face is that often there is a limit as to how much you can withdraw at any one point.  The limit will either be 500,000 or 1 million rupiahs, so you cannot simply take out infinite amounts.  The exchange rate (note this is subject to change) is something like 9,000 Rps to 1 US dollar or 11,000 to 1 euro, so whereas 1million Rps seems like a huge amount, it is only around 110,000 USD.

If you want to use your credit or debit card, it is well worth notifying your card provider that your card will be used in Jakarta and other places in Indonesia.  This should prevent you card provider cancelling your card if it thinks it is being used fraudulently.
If you take in traveller's cheques then the easiest way of exchanging them is if they are in US dollars, although euros, Australian dollars and British sterling will also be accepted without a problem.

Be mindful of the fact that banks are plentiful on Java, Lombok or Bali, but if you are going to any of the more remote islands, make sure that you have enough cash to keep you going.  Costs tend to be lower on these islands, but credit cards will not be accepted.

US dollars are basically a second currency, particularly in Jakarta, so if you are stuck, you can usually use US dollars to pay for some items, particularly larger purchases.  In the tourist destinations, you can often use Singapore dollars to get by, but do not rely on their being accepted- it is somewhat arbitrary.

Credit or debit cards can also be used in a huge number of places in Indonesia, but one thing you may find is that you pay handsomely for the privilege of using your card and it can work out quite expensive, so it is best to try and get by with cash.  You will not be able to use your credit card for smaller purchases or in inexpensive hotels and restaurants, but generally, if it is a large hotel or expensive restaurant, then a credit card will be accepted.

As a rule of thumb, it is possible to use credit cards in the touristy areas, but not so much in smaller towns or in the countryside.

Safety Issues

Indonesia is a safe place to visit in terms of crime, there are no significant risks in terms of armed crime or kidnapping.  There is a risk of being robbed in the sense of pickpocketed or someone just snatching your wallet or handbag, particularly if you have just used an ATM machine, so be very careful when using an ATM.

Corruption is quite widespread in Indonesia and it is something that you may have to get used to.  Officials will often ask for a gift i.e. a bribe and it is at your discretion as to whether or not you pay this bribe, but remember that being unwilling to do so, may lead to strife and the judicial system in Indonesia is also extremely corrupt as well as harsh, so be very wary and at all times, be polite, not aggressive.  Politeness works well in Indonesia, shouting or being 'hostile' will probably just backfire on you.  Remember that you are a guest in the country and so it is best to adhere to their culture, even if you do not agree with it.

Indonesia is slightly unsafe in parts due to internal civil unrest.  There have also been terrorist attacks in the tourist areas of Bali and Jakarta as well.  If you travel to any of the following areas, then you should exercise extreme care, to ensure that you are safe.  Some of the precautions that you should take is only going to nightclubs/bars where security is quite strict and also if cars can park in front of the venue, do not go in, only go to restaurants, bars etc where parking in front of the venue is forbidden.

The areas in question are: Maluku, Papua, Kalimantan and Sulawesi.  You should also try to avoid times when elections are going to be held, since these often spark off political demonstrations, which in turn can get quite ugly very quickly.

The final safety issue has to be the problem of earthquakes as well as tsunamis.  Obviously these cannot be predicted months in advance, so it is difficult to pick a time that you can be assured that you are safe.  However, it is a large collection of islands and as such, many islands are undisturbed by a tsunami happening on another island, so it is hardly fair to class Indonesia as one small place, it is actually very large in terms of area, particularly because of the distances between the islands.

You should also be aware that healthcare in Indonesia is not very good, so try to get a good insurance policy, that will give you the best possible care and if necessary, get you to Singapore, where you will get better treatment.

Spending Rupiahs

Despite its high levels of inflation, Indonesia is still a destination that offers staggeringly good value for money.  It is possible to almost live like  a king, for only a few dollars/euros a day.  If however, your budget can stretch a little further, then you really can enjoy some opulent living when in the country.

Like anywhere, the tourist resorts are more expensive, but on the other hand there are more tourist orientated facilities at the resorts, so in some ways, you are paying for the luxury of more facilities!  The Bintan resorts are definitely the most expensive, but they have a very luxurious air to them, though they are definitely out of the price range for backpackers!

Shopping in Indonesia is a real treat for anyone who lives to shop, with some fantastic shops and markets.  You will find that cash is the only way of paying for purchases in the smaller shops and it is also necessary to haggle or barter in the very small shops or market stalls.  Sometimes, this can be confusing, because you aren't sure if you are being given the final price, or the price before the bartering commences !  If you are bartering, then do so politely.  Politeness is much valued in Indonesia and whereas in some countries the whole bartering process begins with a dismissive shrug from a customer, this is not the case in Indonesia.  So remain polite and smile!

With islands to visit such as Java, Bali and Lombok and a total of 17,000 different islands, Indonesia is an incredibly beautiful location, with a real sense of peace and tranquillity, coupled with all the frenetic excitement of the cities, like Jakarta.

There are some islands in Indonesia that are inhabited, but the people are almost not Indonesian, they have their own culture, language and live very different, non 21st Century lives, whilst still being able to export goods such as nutmeg.  If you can get out to one of these islands and experience their way of life and see how life in paradise is lived!

Overview

The tsunami that devastated much of the province of Aceh in 2004, has caused Indonesia some serious problems and much of that area is still being re-built.  Despite the aid that was given to the country, there is along way to go before Indonesia will be able to fully recover from the devastation the tsunami wrought on its landscape.

In addition the Bali bombing also caused significant numbers of travellers to stay away from the whole country (despite it being made up of 17,000 islands!).

So in a lot of ways, Indonesia really needs visitors now, in order to be able to ensure that its tourism sector flourishes and that people are able to enjoy the delights of this very peaceful country.

 

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