A proposed change to Indonesia’s currency could make things a whole lot easier for Aussie travellers. A new bill plans to slash several zeros from rupiah denominations, which will make shopping and exchanging cash simpler.
Indonesia — and Bali in particular — was the number one holiday destination for Australians over the 2024-2025 financial year, according to the Bureau of Statistics. Currently, the easiest way to quickly estimate the exchange rate is to drop four zeros off the rupiah amounts, for example, 100,000Rp = roughly $10 (but closer to $9 on current rates).
The new bill is expected to be completed in 2027 and plans to remove three zeros from rupiah denominations without impacting its purchasing power.
Indonesia’s currency could look a lot different by 2027. Source: Getty
It’s not the first time the bill has been proposed. Back in 2013 the government submitted a draft to parliament, but it was shelved.
If this plan goes ahead and exchange rates remain constant, a 100,000Rp note will be replaced with a 100Rp note, and Australians would simply have to drop one zero to calculate that it equates roughly to AUD$10.
Matt Masson, CEO of Australia’s leading independently owned travel-buying network CT Partners, told Yahoo News the “most noticeable” change for Aussies will be “simpler mental maths”.
“Fewer zeroes on prices will make it easier for travellers to budget, tip and check receipts day-to-day,” he said.
“Reducing the number of digits on prices will make transactions easier. It cuts down on keying errors, helps travellers compare costs more quickly, and minimises the risk of accidental extra zeroes when paying or transferring.
“The move is also about boosting efficiency and strengthening confidence in the currency, which benefits visitors too.”
The denominations have long been a point of confusion for tourists, with many online Bali groups filled with posts from travellers trying to figure it out.
“Seriously guys, I just cannot get my head around the money here, I find it so confusing,” one woman wrote. “I’m sure we are giving it away.”
“Any tricks on remembering and easily converting prices in your head? At the moment it’s as confusing as converting Flybuy points,” another said.
Rupiah redenomination could help to reduce money scams
A common scam that tourists are often fooled by includes ‘dodgy’ money exchangers that lure travellers in by offering super competitive exchange rates.
While counting out the cash, a sleight of hand manoeuvre is used to conceal some of the notes and the unsuspecting travellers are sent on their way with a lighter wallet and no idea they’ve just been fleeced.
Matt believes having a better understanding of the currency will help Aussies track their money better without having to trust strangers with their hard-earned cash.
“The redenomination should make it easier to spot any irregularities in cash exchanges, but travellers will still need to stay alert,” he warned.
“With fewer zeros, it’s simpler to identify short-changing or mismatched totals on handwritten calculations. We continue to encourage Australians to use only reputable, licensed money changers like those authorised by Bank Indonesia and clearly marked as ‘PVA Berizin’ and to always count cash before leaving the counter.”
Matt said it’s likely both the old and new rupiah will be in circulation during a transition period as the country adjusts to the new system.
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