Money in Indonesia: Banks, ATMs, cards & currency exchange

Indonesia offers a captivating blend of natural beauty, vibrant city life, and unique cultural experiences. From its stunning beaches perfect for snorkeling and diving to the bustling streets of Jakarta, there's something for every traveler.

With its diverse attractions, Indonesia's tourism sector continues to thrive. The country welcomes a significant number of visitors each year, particularly during its peak season.

If you're planning a trip to Indonesia, understanding the local currency is essential. This guide provides an overview of the Indonesian Rupiah (IDR) and how to manage your money effectively, including how to get the best exchange rates. including how to get the best exchange rates. We'll also introduce you to Wise as an option that can help save on international transactions during your travels.

Currency in Indonesia

The official currency of Indonesia is the Rupiah (IDR).

While some larger hotels and tourist-oriented businesses may accept other currencies like U.S. dollars, it's generally not advisable. You'll likely end up paying a premium due to unfavorable exchange rates. Furthermore, be cautious of businesses that advertise prices in U.S. dollars and then attempt to overcharge you when you pay in IDR. It's best to stick to using Rupiah for most transactions.

Characteristics of the Indonesian Rupiah (IDR)

Prices are typically rounded to the nearest Rupiah. In some smaller shops, you might receive small candies as change for minor rounding differences. This is a common and harmless practice.

Exchanging currency in Indonesia

It's generally recommended to exchange your currency after arriving in Indonesia to secure a better exchange rate. Many exchange bureaus outside of Indonesia may not carry Rupiah, or may offer less favorable rates.

Avoid exchanging your cash in the airport or hotel if you can

Airport and hotel exchange rates are notoriously poor. If you need cash immediately upon arrival, exchange only a small amount. A better alternative is to use an ATM to withdraw Rupiah directly. For larger exchanges, wait until you can reach currency exchange businesses in the city, where competition leads to better rates.

Beware of "No Fees" or "Zero Commission" Claims

Be skeptical of exchange services advertising "No Fees" or "Zero Commission." These businesses often make their profit by offering a significantly worse exchange rate. Always compare the offered rate to the mid-market rate.

Understanding the Mid-Market Rate is Key

The mid-market rate (also known as the interbank rate) is the one you usually see on Google - the rate banks use to trade with each other. It's the fairest rate you can hope for, and it's crucial to know this rate before you exchange any money. You can find the current mid-market rate using an online currency converter. A great option online is the Wise's currency converter.

The difference between the mid-market rate and the rate offered to you (plus any explicitly stated fees) represents the exchange service's profit margin.

If you’re exchanging cash, bring clean, undamaged banknotes in larger amounts from home

When exchanging cash, ensure your banknotes are clean, crisp, and undamaged. Exchange bureaus generally prefer larger denominations and may offer slightly better rates for them. Be attentive during the counting process and request larger bills for easier handling.

Using traveller's checks in Indonesia

Traveller's Checks are largely outdated and not widely accepted in Indonesia. Some banks might exchange them, but the rates are typically unfavorable, and you'll need to present your passport, which can be inconvenient. Modern alternatives like debit/credit cards and ATM withdrawals are generally more practical.

Overall, many travellers are moving away from using Traveller’s Checks entirely in favour of a mix of cash, credit/debit card and ATM withdraws.

Using credit cards and debit cards in Indonesia

Credit and debit cards (Visa, Mastercard, American Express) are widely accepted in larger establishments like hotels, restaurants, and department stores in major cities and tourist areas. However, it's crucial to have cash (Rupiah) for smaller businesses, markets, and travel in more remote regions.

Let your bank know that you’ll be travelling abroad

Always inform your bank of your travel dates to Indonesia before you depart. This prevents your card from being flagged for suspicious activity and potentially blocked.

Decline Dynamic Currency Conversion (DCC)

When using your credit or debit card, you may be offered the option to be charged in your home currency. This is called Dynamic Currency Conversion (DCC). Always decline DCC. It allows the merchant's bank to set the exchange rate, which is almost always worse than the rate your own bank would provide. Always choose to be charged in the local currency (IDR).

ATMs in Indonesia

ATMs are readily available in major cities and tourist destinations. Use the following ATM locators to find machines within your card network:

• Visa ATM Locator
• Mastercard ATM Locator
• Amex ATM Locator

Check Your Bank's Foreign Transaction Fees

Contact your bank to inquire about their fees for international ATM withdrawals and foreign transactions. Some banks offer accounts with reduced or waived fees, which can be beneficial for frequent travelers. Also ask if your bank has a partnership with an Indonesian one.

Choose to be Charged in Local Currency (IDR) at ATMs

As with credit/debit card transactions, ATMs may offer DCC. Always select to be charged in local currency to get the best exchange rate from your bank.

Even with potential fees, using ATMs is often the most cost-effective way to obtain local currency, provided you avoid DCC.

Banks in Indonesia

Indonesia has a diverse banking sector, including national banks, regional banks, and institutions offering Sharia-compliant banking services. Many international banks also have a presence in Indonesia.

Major Retail Banks in Indonesia

• Bank Mandiri
• Bank Rakyat Indonesia (BRI)
• Bank Central Asia (BCA)
• Bank Negara Indonesia (BNI)
• CIMB Niaga

International Banks Operating in Indonesia

• HSBC Indonesia
• Citibank Indonesia
• Standard Chartered Indonesia
• Deutsche Bank Indonesia
• J.P. Morgan Indonesia
• Bank of America Indonesia

Getting the Best Exchange Rate with Wise

While ATMs and local exchange bureaus are options, they often come with hidden fees and inflated exchange rates. For a truly transparent and cost-effective way to manage your money in Indonesia, consider using Wise.

Get started with Wise 🚀

Wise offers several advantages:

• Mid-Market Exchange Rate: Wise always uses the mid-market exchange rate, the same one you see usually on Google. You won't find hidden markups in the rate itself.
• Low, Transparent Fees: Wise charges a small, upfront fee for currency conversion, which is clearly displayed before you make a transaction. No surprises.
• Wise Card: The Wise card, available to residents in supported countries, allows you to spend in IDR like a local, avoiding foreign transaction fees and dynamic currency conversion. You can withdraw cash from ATMs with low fees, too.
• Easy Transfers: Wise offers the same mid-market exchange rate and low, transparent fees for international transfers.