Jakarta Money and Costs

Currency: Rupiah (Rp) = 100 sen. Notes are in denominations of Rp100,000, 50,000, 20,000, 10,000, 5000, 1000, 500 and 100. Coins are in denominations of Rp1000, 500, 100, 50 and 25.

Currency exchange: Although there should be no difficulty exchanging major currencies in the main tourist centres, problems may occur elsewhere. The easiest currency to exchange is the US Dollar.

Credit & debit cards: MasterCard, American Express and Visa are widely accepted in Jakarta and the main tourist areas. In more remote areas it is best to carry cash in small denominations. Check with your credit or debit card company for details of merchant acceptability and other services which may be available.

Travellers cheques: Limited merchant acceptance but can be easily exchanged at banks and larger hotels. To avoid additional exchange rate charges, travellers are advised to take travellers cheques in US Dollars or Pounds Sterling.

Currency restrictions: There are no restrictions on the import or export of foreign currency. The import and export of local currency is limited to Rp5,000,000 which must be declared; more than Rp10,000,000 need authorisation. Failure to declare amounts in excess of Rp10,000,000 may result in heavy fines. Local currency may be exchanged on departure.

Indonesia's banking sector plunged into crisis in 1997 when the rupiah tumbled against the U.S. dollar, exposing the shaky lending practices of local banks. For instance, borrowings of 54 local banks exceeded their capital by 200 percent. The result was massive bank runs and a loss of confidence that nearly brought the payments system to a halt. The severity of the crisis meant that even thriving exporters benefitting from the rupiah's devaluation were denied credit.

To breathe new life into a languishing financial industry, the government either liquidated, merged, recapitalized or took over the nation's various banks. Since the crisis began, 65 banks have been closed and 13, including the country's biggest private bank, Bank Central Asia, have been nationalized.. In addition, seven private banks were given a fresh injection of capital to stabilize their finances and four out of seven state-owned banks--Bank Exim, Bank Bumi Daya, Bank Dagang Negara and Bapindo-were merged into one entity called Bank Mandiri. The World Bank estimates that the total cost of cleaning up the banking system is 670 trillion rupiah.

Bank Indonesia is the central bank. It acts as the government's banker and is tasked with issuing currency, implementing monetary policy, and regulating financial institutions. Besides printing Indonesia's currency, the rupiah, it also maintains the economy's international reserves and formulates the annual budget.

Foreign banks open from 8 a.m. to 3 p.m., and can exchange foreign currency. Only two state-owned banks are able to handle foreign exchange: Bank Negara Indonesia and Bank Rakyat Indonesia.