Do I need cash in Indonesia?

Travelling in Indonesia involves becoming familiar with the Indonesian rupiah, a currency with a rich history and a ubiquitous presence in daily life. Although card payments are becoming more common in the country, cash remains essential for most everyday expenses. Understanding how the IDR works, when it is indispensable, and how to manage your money effectively on the spot is crucial for a smooth, economical, and hassle-free trip.

 

Key Takeaways:

• The Indonesian rupiah (IDR) has been the official currency of the country since 1945, inheriting a historical connection to independence. It is now available in both coins and banknotes of various denominations.
• Coins, though rarely used, are practical for small everyday expenses, while banknotes, ranging from 1,000 to 100,000 IDR, are the main means of payment.
• Cash remains essential because many businesses do not accept cards, especially outside major cities, and power outages can sometimes make electronic payments impossible.
• Certain situations absolutely require cash, such as meals in warungs, market purchases, entry to natural or cultural sites, local transport, parking, or public toilets.
• A few simple precautions can make travelling easier, such as checking similar-looking notes, carrying small denominations, and arranging your IDR in advance to take advantage of better exchange rates.

 

The official currency of Indonesia is the Indonesian rupiah. Its ISO code is IDR, and it is also written as Rp. The name “rupiah” comes from the Sanskrit rūpyakam, meaning “metallic money.”

The Indonesian rupiah was introduced as the official national currency after the country’s proclamation of independence in 1945. The first IDR banknotes featured the first president of the Republic of Indonesia, Soekarno, on the front and a smoking volcano on the back.

Source: Numista – 1 Rupiah 1945

Today, the currency exists in both coins and banknotes.

Coins:
Indonesian coins have been minted since 1991. They are much less used than banknotes but can be very practical for small everyday expenses such as snacks, parking, or tips:

• 50 IDR
• 100 IDR
• 200 IDR
• 500 IDR
• 1,000 IDR

Banknotes:

• 1,000 IDR
• 2,000 IDR
• 5,000 IDR
• 10,000 IDR
• 20,000 IDR
• 50,000 IDR
• 100,000 IDR

Although card payments are becoming more widely accepted in Indonesia, cash remains the preferred method of payment for several reasons:

• Many businesses and establishments only accept cash.
• Most shops outside major cities do not have card terminals, so you will need to pay in cash.
• Power outages and internet connection issues are relatively common in Indonesia, making card payments occasionally impossible. Having cash ensures you can make purchases in any situation.
• Some establishments charge an extra fee for card payments, usually between 3% and 5% of the total amount. Paying in cash is therefore an excellent way to optimise your travel budget.

Many everyday expenses require cash when travelling in Indonesia:

• Take the time to visit warungs, small street restaurants found throughout the country. You can sample local cuisine, but you must pay for your meal in cash.
• Markets are an integral part of Indonesian culture. Whether buying clothes, souvenirs, or meals, you will almost always need cash.
• Small shops and family-run businesses usually only accept cash.
• Access to certain cultural sites (temples, waterfalls, etc.) requires a ticket that can only be purchased with cash.
• Most local transport options only accept cash, including buses, minibuses, and motorcycle taxis when not booked via an app.
• Parking fees and tolls are paid exclusively in cash.
• Public toilets also require cash payment.

Read also: 

• How To Get Cash Before Travelling Abroad?
• How to Handle Tipping Abroad?

Here are a few tips to keep in mind when travelling in Indonesia to make your stay and payments easier:

• The 10,000 and 100,000 IDR notes look very similar and can easily be confused. Take the time to check carefully before paying to avoid mistakes.
• The most cost-effective way to obtain IDR is to order it online and collect it from a currency exchange office before departure. This way, you benefit from better exchange rates and can cover essential expenses immediately upon arrival.
• It is also advisable to carry small denominations for daily expenses, as many small businesses may have difficulty giving change for large notes.

As you can see, having cash is essential when travelling in Indonesia. Whether it’s for small daily expenses, making purchases outside major cities, or saving money by avoiding card fees, cash will truly become a part of your everyday life in Indonesia.

To obtain IDR, consider ordering online and collecting your money from the nearest ChangeGroup exchange office. This allows you to benefit from the best exchange rates with zero commission.