About the Indonesian Rupiah
The Indonesian rupiah is the currency of Indonesia, issued by Bank Indonesia. The rupiah floats, but the central bank intervenes in the spot, forward and bond markets to limit sharp moves.
The rupiah cannot be freely traded outside Indonesia. Offshore investors hedge it with non-deliverable forwards that settle in dollars, and Indonesian law requires the rupiah to be used for transactions within Indonesia.
Indonesia exports coal, palm oil, nickel and other commodities, so the rupiah is sensitive to commodity prices and to flows of foreign money into its bond market. Bank Indonesia's board sets the policy rate every month.
Paying in IDR
- Account details
- Indonesia does not use IBANs. A rupiah payment needs the account number, the account holder's name exactly as the bank holds it, and the bank's SWIFT/BIC code.
- Underlying transactions
- Indonesian banks ask for documents showing the underlying transaction, such as an invoice or contract, for larger foreign currency purchases. Include a clear description of the payment so the recipient can provide them.
- Domestic clearing
- Rupiah transfers within Indonesia go through BI-FAST, Bank Indonesia's instant payment system, or through BI-RTGS for large payments.
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