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===1965 onwards - the 1000 to 1 revaluation of the rupiah===
===1965 onwards - the 1000 to 1 revaluation of the rupiah===
In response to rampant [[inflation]], which was 27% in 1961, but jumped to 174% in 1962, by 1965 was 600%, during [[Transition to the New Order|Indonesian political turmoil of 1965]], the new rupiah was introduced on [[13 December]], [[1965]], at a rate of 1000 of the old unit.<ref>[http://users.erols.com/kurrency/asia.htm erols.com]</ref> The price index at the end of 1965 had been calculated at 363 times higher than in 1958, and prices had risen approximately seven times over the previous 12 months.<ref>{{cite book
In response to rampant [[inflation]], which was 27% in 1961, but jumped to 174% in 1962, by 1965 was 600%, during [[Transition to the New Order|Indonesian political turmoil of 1965]], the 'new rupiah' was introduced on [[13 December]], [[1965]], at a rate of 1000 of the old unit.<ref>[http://users.erols.com/kurrency/asia.htm erols.com]</ref> The price index at the end of 1965 had been calculated at 363 times higher than in 1958, and prices had risen approximately seven times over the previous 12 months.<ref>{{cite book
| last = McDonald | first = Hamish | title = Suharto's Indonesia | publisher = Fontana Books | date = 1980 | location = Victoria, Australia | pages = page 55 | isbn = ISBN 0-00-635721-0}} </ref> In real terms (i.e., with inflation taken into account), a labourer in Jakarta was estimated to have earned 40 per cent of his earnings in 1958.<ref>''Far Eastern Economic Review'', 13 February 1965 (cited in {{cite book
| last = McDonald | first = Hamish | title = Suharto's Indonesia | publisher = Fontana Books | date = 1980 | location = Victoria, Australia | pages = page 55 | isbn = ISBN 0-00-635721-0}} </ref> In real terms (i.e., with inflation taken into account), a labourer in Jakarta was estimated to have earned 40 per cent of his earnings in 1958.<ref>''Far Eastern Economic Review'', 13 February 1965 (cited in {{cite book
| last = McDonald | first = Hamish | title = Suharto's Indonesia | publisher = Fontana Books | date = 1980 | location = Victoria, Australia | pages = page 55 | isbn = ISBN 0-00-635721-0}} )</ref> Although the devaluation in notes was 1,000 to 1, prices were reckoned to fall by only 10 times.[http://www.bi.go.id/msmbiweben/sejarah_content3.asp?id=112] The new rupiah also gave the Bank Indonesia the power to issue coins and notes below 5 rupiah.
| last = McDonald | first = Hamish | title = Suharto's Indonesia | publisher = Fontana Books | date = 1980 | location = Victoria, Australia | pages = page 55 | isbn = ISBN 0-00-635721-0}} )</ref> Although the devaluation in notes was 1,000 to 1, prices were reckoned to fall by only 10 times.[http://www.bi.go.id/msmbiweben/sejarah_content3.asp?id=112]


[[Image:5000rupiah2001.JPG|thumb|right|200px|5000 rupiah]]
[[Image:5000rupiah2001.JPG|thumb|right|200px|5000 rupiah]]
This devaluation had the side-effect of unifying the currency, ending the Riau money (the Irian Barat rupiah lasted until 1971). [http://www.bi.go.id/msmbiweben/sejarah_content.asp?id=24]
The second rupiah initially consisted of a series of notes issued by the Bank Indonesia. These were in denominations of 1, 5, 10, 25, and 50 sen of new design dated 1964, plus reissues of the 1958 10 (dated 1963), 25, 50, and 100 rupiah notes (dated 1964). A 10,000 rupiah note was issued for the first time, with a new design in the same style as the 1958 series, as either red or green notes. The 1 and 2.5 rupiah notes were re-issues of the 1960-1961 dancers series in new colours.


New notes were issued in denominations of 1, 5, 10, 25, and 50 sen showing 'Volunteers', dated 1964. These were a rather optimistic issue in that they had negligible value, and never saw significant circulation due the substantial failure of the devaluation.
A second issue of banknotes, dated 1968, was of 1, 2½, 5, 10, 25, 50, 100, 500, 1,000, 5,000 and 10,000 rupiah. The notes featured a Sudirman, backed by various scenes of industry.


Coins were reintroduced in [[1970]], with 1, 2 and 5 rupiah denominations, to which 10, 25 and 50 rupiah pieces were added in 1971 and 100 rupiah coins in 1973. Banknotes below 100 rupiah were not printed after the reintroduction of coins.
In addition, notes showing Soekarno on their face, confusingly dated 1960, in denominations of 5, 10, 25, 50, and 100 rupiah were issued. 500 and 1,000 rupiah notes in the same design were added later.


To complete the 'new rupiah', "Republik Indonesia" notes, in the same Soekarno design of 1 and 2 1/2 rupiah, were issued dated 1964.
⚫
The 1,000, 5,000 and 10,000 rupiah notes were re-designed in 1975, while 100 and 500 rupiah were re-designed in 1977. Another new design for the 10,000 rupiah came dated 1978, while the 1,000 and 5,000 rupiah were re-designed in 1980. The 500 rupiah was updated dated 1982. An entirely new set of notes was added in 1984 in all denominations from 100 to 10,000 rupiah. 1992 re-designed the notes again, adding a 20,000 rupiah, changing the design, but maintaining colour and size of the 1984 notes in each denomination. From this issue, the notes carried in small text in addition to the date of authority "Direksi 1992", the year of printing. These notes continued to be printed until 1998.

Collectively, these notes repealed all banknotes that were circulating in Indonesia prior to this point.

By 1968 the Suharto [[New Order]] had been established, and Bank Indonesia, as of 1968 was given sole right to issue banknotes.[http://www.bi.go.id/msmbiweben/sejarah_content.asp?id=24]

Hence, the new issue of banknotes, dated 1968, was of 1, 2½, 5, 10, 25, 50, 100, 500, 1,000, 5,000 and 10,000 rupiah, all eminating from Bank Indonesia. The notes featured a Sudirman, backed by various scenes of industry. As a result of this issue, the first 'new rupiah' notes of 'Sudirman', were withdrawn from circulation. The 1 and 2 1/2 notes were issued from January 1968, notes 5 - 1000 from January 1969, and the 5,000 and 10,000 from April 1970. The 1000, 5000, and 10,000 notes were withdrawn in 1977, while the 100 and 500 rupiah notes remained valid until 1988. Notes below 100 rupiah were withdrawn in Indonesia permanently from 1975.

Coins were reintroduced as of January 1 [[1971]], with 1, 2 and 5 rupiah denominations (dated 1970), plus 10, 25 and 50 rupiah pieces (dated 1971) with 100 rupiah coins follwing in 1973. These replaced low-value banknotes.

⚫
The 1,000, 5,000 and 10,000 rupiah notes were re-designed in 1975 as an anti-counterfeiting measure against fake notes of the Sudirman series.[http://www.bi.go.id/msmbiweben/sejarah_content3.asp?id=248] The 100 and 500 rupiah were re-designed in 1977. Another new design for the 10,000 rupiah came dated 1978, while the 1,000 and 5,000 rupiah were re-designed in 1980. The 500 rupiah was updated dated 1982. An entirely new set of notes was added in 1984 in all denominations from 100 to 10,000 rupiah. 1992 re-designed the notes again, adding a 20,000 rupiah, changing the design, but maintaining colour and size of the 1984 notes in each denomination. From this issue, the notes carried in small text in addition to the date of authority "Direksi 1992", the year of printing. These notes continued to be printed until 1998.


In 1993 a 50,000 rupiah note celebrating "25 Years of Development" in polymer (limited to five million, and in a presentation pack explaining the 25-year growth plan since 1969) and paper was issued. The design featured Soeharto on the front and Soekarno-Hatta airport on the back, with a plane taking off to symbolise Indonesia's growth. The paper notes were imprinted 1993 and 1994, and featured a hologram.
In 1993 a 50,000 rupiah note celebrating "25 Years of Development" in polymer (limited to five million, and in a presentation pack explaining the 25-year growth plan since 1969) and paper was issued. The design featured Soeharto on the front and Soekarno-Hatta airport on the back, with a plane taking off to symbolise Indonesia's growth. The paper notes were imprinted 1993 and 1994, and featured a hologram.

Revision as of 01:56, 30 April 2008

Indonesian rupiah
rupiah Indonesia Template:Id icon
File:Indonesian Rupiah.jpg
Rupiah banknotes, only the Rp 1000 and Rp 5000 notes are current
ISO 4217
CodeIDR (numeric: 360)
Subunit0.01
Unit
SymbolRp‎
Denominations
Subunit
 1/100sen
Banknotes
 Freq. usedRp 1000, Rp 5000, Rp 10 000, Rp 20 000 Rp 50 000, Rp 100 000
Coins
 Freq. usedRp 100, 200, 500
 Rarely usedRp 25, 50, 1000
Demographics
User(s) Indonesia
Issuance
Central bankBank Indonesia
 Websitewww.bi.go.id
Valuation
Inflation8.17 %
 SourceBank Indonesia, March 2008

The rupiah (Rp) is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. The symbol used on all banknotes and coins are Rp. The name derives from the Indian monetary unit rupee. Informally, Indonesians also use the word "perak" ('silver' in Indonesian) in referring to rupiah. The rupiah is subdivided into 100 sen, although inflation has rendered all coins and banknotes denominated in sen obsolete.

The Riau islands and the Indonesian half of New Guinea (Irian Barat) had their own variants of the rupiah, but these were subsumed into the national rupiah in 1964 and 1971 respectively (see Riau rupiah and West New Guinea rupiah).

History of the Indonesian Rupiah

1600-1942 - Dutch Colonial Money

From the early 17th Century, the Dutch East India Company issued coinage (marked 'VOC', the Dutch East Indiea Company) in its territory of what was to become the Netherlands Indies. The firm went bust in 1800, and control over the territory reverted to The Netherlands. The first coins were struck in the name of what was then the Dutch government, the Batavian Republic, in 1802, with low-value copper duit coins, as well as silver and gold gulden coins. The gulden replaced various local currencies throughout the Indies, with the Sumatran dollar disappearing in 1824, and the Javan Rupee, which had been minted by the Dutch, in 1816. Some other kingdoms and Sultanates had their own coins until they fell under Dutch control, such as the Aceh keping (Aceh was finally conquered in 1903).

The currency would be considered very stable by modern Indonesian standards, with the financial instrument for day-to-day transactions being low-value coins. The first banknotes were issued in 1815 by the government. The central circulating bank was founded in 1828, 'De Javasche Bank' (The Javanese Bank), and began issuing banknotes in that year. The notes were generally issued in denominations of 5 gulden and above, with smaller transactions easily handled in coin.

Although the role of the government (to issue coin) and the circulating bank (to issue bank notes of 5 gulden and up) was well established, in 1919 the government began issuing 1 and 2½ gulden notes, to address the issue of metal hoarding, largely caused by World War 1. ½ gulden notes were added in 1920.

Upon the outbreak of World War II, gulden coins were once again hoarded, and the government issued 1 and 2½ gulden notes in 1941 to address the shortage (partly caused by supply problems from the coins, which were minted in The USA).

1942 - 1945 Japanese Invasion - the dawn of hyperinflation in Indonesia

In 1942, the Japanese invaded Indonesia, liquidating the banks, including 'De Javasche Bank', and voiding debt obligations.[1] With this action, it was announced that notes issued by 'De Japansche Regeering' (the Japanese government) would be legal tender from March 1942 (although the existing notes remained valid), with notes printed from 1 cent to 10 gulden, by the new circulating bank Nanpo Kaihatsu Ginko.

In the mean time, Dutch notes had been printed in the USA for use at the end of the war. These notes, ordered in December 1942, and dated on the notes March 1943, were labelled as 'Nederlandsch-Indische Gouvernementsgulden' printed in Dutch, along with the additional Indonesian text indicating the denomination of the notes and the word 'roepiah'. As it transpired, the war lasted longer than expected, and this money was not issued at the time.

As their occupation continued, by 1944 the Japanese had determined that their long-term strategic interests were best furthered by encouraging Indonesian nationalism, and it issued new notes printed in Indonesian language, the Netherlands Indies roepiah. By the end of the War, the Japanese had caused a massive increase in the money supply, which was 230 million gulden of notes pre-war, to several billion post-war. Along with the actions of the post-war Dutch war, there was massive inflation and damage to the economy of the country.

1945 - 1949 Indonesian declaration of Independence - the first rupiah

At the end of the war, the returning Dutch 'Netherlands Indies Civil Administration' (army), which were given control of the institutions of the Japanese administration by the Allies, reincorporating DJB from 10th October 1945, began issuing the 1943-dated money, starting from 1944 in New Guinea. This money is known as the 'NICA gulden', or colloquially as 'uang merah' ('red money' (the 10 rupiah note was red, and there may also be a reference to blood, as the money was unpopular with the Indonesian revolutionaries)), and exists in denominations of 50 sen up to 500 gulden. These notes were marked "Netherlandsch-Indische Gouvernmentsgulden'

With the circulation of the 1943-dated money, after March 2nd 1943, in areas under NICA control, pre-war Dutch notes were demonetized, and the Japanese money was exchangeable at a rate of 1 Japanese gulden to 3 NICA sen. [2] Due to public opposition to the low exchange rate, and nationalist opposition to the use of Dutch money, the Japanese money continued to be used. As a result NICA re-monetized the pre-war 5 gulden note.

New money was issued by the Dutch from July 1947, in the form of fully Dutch/Indonesian bilingual gulden/roepiah notes from 'De Javasche Bank'. These notes were dated 1946, and consisted of 5 (violet), 10 (violet), 25 (red) gulden notes.

The supply of these soon exhausted, and the administration remonetized all of the pre-War DJB and government money as well, circulating unissued paper still stored in the vaults. This caused a 50% increase in the amount of money in circulation from 1947 to 1949. The administration also issued bronze and silver coins in the original pre-war denominations, minted from 1943 to 1945 in the USA, but due to inflation, the coins were worth more as scrap, and many were melted into household goods and silver artefacts.

As a result, it issued treasury notes instead, from December 1 1947, in 10 and 25 sen denominations. These notes were successful as they were in Indonesian (with Dutch and Indonesian on the reverse) and stated to have been issued by 'Indonesia' (being NICA), and continued to be utilised by the Indonesian government even after independence, until 1951, when Indonesia acquired its first coins.

Meanwhile, the new Indonesian government, which had declared independence on 17th August 1945 was in control of much of Indonesia (the Dutch relinquished control on December 27th 1949), still lacked many of the institutions of state, and announced that Japanese money as well as pre-NICA Dutch money would be legal tender in the Republic.

Its first bank notes, and hence the first 'Indonesian rupiah' were dated 17th October 1945 under the authority of the "Republik Indonesia", and intended for issue on February 1st 1946, but first batch of notes were captured by NICA, and so the notes were re-printed and begun to be circulated in Java from October 10th 1946. According to the proclamation, 10 rupiah would be worth 5 grams of pure gold, and 1 rupiah would be worth 50 of the Japanese money in Java, and 100 of the Japanese money elsewhere. The notes were in denominations of 1, 5, and 10 sen notes, plus ½, 1, 5, 10, and 100 rupiah notes.

New notes were issued dated January 1 1947, in denominations of 5, 10, 25, and 100 rupiah. The next new issue was dated 26th July 1947, and consisted of ½, 2½, 25, 50, 100, and 250 rupiah notes.

Due to distribution issues caused by the war with the Dutch, and concerns that the RICA money would become accepted instead, from 1947 the provisional Indonesian government instructed regional administrations and military leaders to issue local Indonesian rupiah notes. These notes were marked with the place of issue and were in different designs from the national money. The available denominations varied from place-to-place and some were very crude. Several dozen regions issued money in total, mostly in Sumatra (where support for the republic was strong, but the Dutch had achieved some control), as well as several in Java (by 1947 the republican leaders had been forced back to Jogjakarta).

New notes were issued by the national government in 1948, in the bizarre denominations of 40, 75, 100, and 400 rupiah, plus an unissued 600 rupiah note.

It was planned in 1949 to revalue the national rupiah notes of the republic (which were at this time circulating in Java). To do this, "Rupiah Baru" ('new rupiah') notes were printed. This revaluation did not take place in Java, but some were used for a revaluation in Aceh instead. The denominations printed were 10 sen (blue or red), ½ (green or red), 1 (purple or green), 10 (black or brown), 25, and 100 rupiah.

File:Firstrupiahs.JPG
Early rupiah - Netherlands Indies Roepiah, Java rupiah, 1950s rupiah coins, and 1959 rupiah notes

1950-1958 Recognition of Indonesian independence: rupiah devaluation

In 1950, following the Hague treaty agreeing an end to the war with Holland, the new "Republik Indonesia Serikat" (with Queen Juliana as head of state) decided to address the amount of money circulating (due to the treaty the government was required to accept the NICA gulden as legal tender as well), which had reached 3.9 billion rupiah. A bewildering variety of money was in circulation, including local and national rupiah, Japanese, pre-war, and NICA Dutch monies.

Due to the large amount of currency, the new government sought to reduce the money supply by one half. This reform was decreed from 19th March 1950. It did this literally, by cutting the banknotes of 5 gulden and above in half, with the left half replaced with new legal tender notes worth half the face value of the old note, and the right half redeemed for an Indonesian government bond.

As a consequence of this cut, and with the agreement with The Netherlands stating De Javasche Bank was to be the legal circulating bank of Indonesia, and as a result from this time, the 1946-dated DJB note series was revised (the design and dates were the same), with the 5 gulden note changing to brown, 10 gulden to green, and 25 gulden to green. In addition, 50 gulden (blue), 100 gulden (brown), 500 gulden (red), and 1000 gulden (black) notes were added, still dated 1946. DJB notes of 1/2 rupiah, 1 rupiah, and 2 1/2 rupiah were added at this time, dated 1948. These notes were of new design, with the Indonesian text ('roepiah') placed above Dutch ('gulden'). Collectively these notes are known as the 'Java Rupiah'. Old Dutch notes below 5 gulden remained as legal tender.

In addition to these DJB bank notes, the "Republik Indonesia Serikat" passed legislation on June 2nd 1950 to allow it to issue new treasury notes, which were dated 1 January 1950 in 5 and 10 rupiah denominations.

As part of the exchange, local and Republik Indonesia money was also demonetized. 125 Rp of the first "Republik Indonesia" rupiah (issued in Java) was exchanged for 1 Rp of Republik Indonesia Serikat. Higher exchange rates were in place for local currencies, some of which had been heavily devalued by the over-printing of money by the army. The recently devalued Rupiah Baru of Aceh were exchangeable at 1.75 to 1.

The Indonesia Serikat arrangement did not last long, with the RIS dissolving on 17 August 1950 (5 years after the original declaration of independence).

Sen coinage

The 1 and 5 sen coins had centre holes, similar to the old copper coins of the Dutch, while the other coins were solid. All were aluminium except the 50 sen, which was copper-nickel. All but the 50 sen featured Arabic on one side and Indonesian on the other.

Due to inflation, 1 sen coins were found to be worthless, and only 100,000 were minted, all dated 1952. The 1 sen coin shows rice stalks around the hole, and the words "INDONESIA 1952" "1 Sen" on the obverse and the Arabic text for 'Indonesia' on the reverse written in a circle around the central hole.

The 5 sen coins survived a little longer with coins issued dated 1951 and 1954. The design was the same as the 1-sen coins but on a larger coin.

The 10-sen coin was first minted dated 1951, followed by a 1954 date change. 50 million coins were minted dated 1954. The design for this coin shows the words "INDONESIA" "1951" or "1954" around the outside of the obverse with a central "10 SEN" in a scalloped design. The reverse shows the Garuda Pancasila with Arabic text for 'Indonesia' atop.

A revised coin dated 1957 replaced the Arabic with the word "INDONESIA" and again 50 million coins were minted.

The 25-sen coin was dated 1952, with 250 million coins in total issued. The design was the same as the 10-sen coin but larger, with "25 SEN" replacing "10 SEN" The coin was updated with the Arabic script replaced by Roman script, but no other design changes. 25 million of these revised coins were minted dated 1955, and 100 million dated 1957.

The 50-sen coin had the most designs as it survived the high inflation the longest, with the initial design showing "INDONESIA" 1952 "50 SEN" on the obverse, in the same manner as the 10- and 25-sen coins, and "DIPA NEGARA" with a picture of Diponegoro and Arabic text on the reverse. 100 million 1952 coins were minted.

Variations exist dated 1954 (1.29 million minted) and 1955 (15 million). The 1957 mintage excised the Arabic text as well as varying the picture of Diponegoro. 26 million were minted. For 1958 the coin was debased, with aluminimum replacing copper-nickel. The redesigned coin saw Garuda Pancasila replacing Diponegoro, with a simpler obverse design stating "REPUBLIK INDONESIA 1958" with the central "50 SEN" no longer scalloped. 34 million were minted dated 1958, 100 million dated 1959, and 150 million dated 1961 - the last sen coinage to be issued in Indonesia.

Gold 25 Rupiah

A variation of the 1952 50 sen coin was issued in gold with a officla value of 25 rupiah (although no value on the coin). The coin varied from the 50-sen by featuring the logo "BEKERDJA-MENABUNG-MEMBANGUN" and the Garuda emblem instead of the year and denomination.

Nationalisation of De Javasche Bank, the birth of Bank Indonesia

Due to the desire to remove the influence of the DJB, which was felt to be unwanted foreign influence on the country, the government moved to nationalize the bank. This action, announced on 30 April 1951, was completed on 15 December 1951, with DJB becoming a government institution of Indonesia.

In addition to this act of nationalisation, on 3 October 1951, the republic passed an Emergency Act on valid currency, in order to repeal the Indische Muntwet Act of 1912, which still governed valid currency in Indonesia. The consequence of the new Act was that old Dutch coins would be void for payment,[3] and new coins would be issued with values of 1, 5, 10, 25, and 50 sen. All other banknotes were declared only temporarily valid, to be withdrawn from circulation in due course (under the law the government only had issuing power over notes and coins worth less than 5 rupiah). The valid notes would be government 1 and 2½ rupiah notes. Thus, 'Republik Indonesia' notes dated 1951 were issued in 1 and 2 1/2 rupiah denominations.

In order to remove the old banknotes from circulation, the government completed the DJB nationalisation process, with the bank becoming Bank Indonesia on 1 July 1953 via the Principal Act on Bank Indonesia 1953, with responsibility for the issue of banknotes of 5 rupiah and above (as had DJB). A side-effect of this was that the Emergency Act of 1951 was renewed as the Currency Act of 1953, with the 1951 1 and 2½ rupiah notes reissued with the signature of the new Minister of Finance dated 1953.

Notes featuring the name of the new bank ('Bank Indonesia'), had been prepared dated 1952, in denominations of 5, 10, 25, 50, 100, 500, and 1000 rupiah. The notes except for the 5 rupiah were printed by Johan Enschede en Zonen of Holland (as had most Dutch money previously). The 5 rupiah note was printed by Thomas De La Rue & Co. Ltd., England. Some of the 10 and 25 rupiah notes were printed by NV Percetakan Kebayoran in Indonesia. The notes were circulated from 2nd July 1953 to 25th January 1955. Despite the new notes, DJB money remained as legal tender. The old notes were repealed as follows:

  • 1 January 1954: 1/2, 1, and 2 1/2 gulden notes withdrawn
  • 2 March 1956: 1000 gulden '1946' note withdrawn, effective 5th March 1959, due to forgery.
  • 1 January 1957: 10 sen and 25 sen '1947' notes withdrawn
  • 22 November 1957: 1 and 2 1/2 '1948' DJB notes withdrawn, effective 1 December 1957, due to the fact that these denominations of notes were the issuing privilege of the Dutch government at the time

1954 brought a redesign of the 1 and 2½ rupiah notes, which were re-dated with the new Minister of Finance's signature in 1956.

The next series of Bank Indonesia notes was the so-called animal series due to their design, and were printed in 1957. They were printed in denominations of 5, 10, 25, 50, 100, 500, 1000, 2500, and 5000 rupiah. The circulation for the 5-1000 rupiah notes was from 1958 to 1959. The designs on the 10 and 25 rupiah for this series were withdrawn after circulating for only three days, and the 5000 rupiah, although printed, was never issued for circulation at all following the PRRI revolt. All of these notes were printed by Thomas De La Rue & Co. Ltd., England. The 2500 rupiah note . The animal theme on this series of banknotes has made them popular with modern collectors, and all command good prices on the collectors' market.

1959-1964: currency devaluation

The Indonesian economy remained in poor shape, ravaged by inflation, with prices having tripled from 1953-1959. The official exchange rate was devalued by 75% from 11.4 to 45 to the US$ (the unofficial rate, was around half of that, and it had been 3.8 to the dollar in 1949). Following this, 500 Rp and 1000 Rp notes were devalued 90% on 24th August 1959 to 50 and 100 Rp. The actual notes affected were the '1946' 500 gulden, and the 1952 and 1957 500 and 1000rp notes. These were exchanged for either 1952 (culture) or 1957 (animals) series,

Following this devaluation, new notes were printed, dated 1958, printed by P. T. Pertjetakan Kebajoran (except the 500 Rp, printed by Thomes De La Rue), the so-called 'manual workers' series of notes (the reverse showed diverse styles of Indonesian tribal houses). The denominations were 5, 10, 25, 50, 100, 500, 1000, and 5000 rupiah. The 5,000 rupiah from this series exists in 2 varieties, brown & violet, while the 1,000 rupiah was printed in purple or brown. These notes were circulated from 1959 up to 1964 (with design changes).

A new series of banknotes was issued by Bank Indonesia, the 'flower series' (showing flowers on the obverse and birds on the reverse), dated January 1 1959, in denominations of 5, 10, 25, 50, 100, 500, 1000, and 2500 rupiah. These notes were printed by Thomas De La Rue & Co. Ltd., England, and are some of the most vibrant baknotes issued by Indonesia with the bright flowers contrasting with the more muted design on the note. The 2,500 rupiah of this series was never issued for circulation: only a few specimens in different colours exist.

A new design for the 1 and 2½ rupiah government notes was issued in 1960 showing agricultural workers, also re-dated with the new Minister of Finance's signature 1961.

The 'manual workers' series of notes from 1958 were updated in 1963-1964, with the 10 rupiah redated 1963, and 25, 50, and 100 (in both red and blue) dated 1964. A 10,000 rupiah note in red and green with/out printed arms dated 1964 began circulating in August of that year.

1965 onwards - the 1000 to 1 revaluation of the rupiah

In response to rampant inflation, which was 27% in 1961, but jumped to 174% in 1962, by 1965 was 600%, during Indonesian political turmoil of 1965, the 'new rupiah' was introduced on 13 December, 1965, at a rate of 1000 of the old unit.[1] The price index at the end of 1965 had been calculated at 363 times higher than in 1958, and prices had risen approximately seven times over the previous 12 months.[2] In real terms (i.e., with inflation taken into account), a labourer in Jakarta was estimated to have earned 40 per cent of his earnings in 1958.[3] Although the devaluation in notes was 1,000 to 1, prices were reckoned to fall by only 10 times.[4]

File:5000rupiah2001.JPG
5000 rupiah

This devaluation had the side-effect of unifying the currency, ending the Riau money (the Irian Barat rupiah lasted until 1971). [5]

New notes were issued in denominations of 1, 5, 10, 25, and 50 sen showing 'Volunteers', dated 1964. These were a rather optimistic issue in that they had negligible value, and never saw significant circulation due the substantial failure of the devaluation.

In addition, notes showing Soekarno on their face, confusingly dated 1960, in denominations of 5, 10, 25, 50, and 100 rupiah were issued. 500 and 1,000 rupiah notes in the same design were added later.

To complete the 'new rupiah', "Republik Indonesia" notes, in the same Soekarno design of 1 and 2 1/2 rupiah, were issued dated 1964.

Collectively, these notes repealed all banknotes that were circulating in Indonesia prior to this point.

By 1968 the Suharto New Order had been established, and Bank Indonesia, as of 1968 was given sole right to issue banknotes.[6]

Hence, the new issue of banknotes, dated 1968, was of 1, 2½, 5, 10, 25, 50, 100, 500, 1,000, 5,000 and 10,000 rupiah, all eminating from Bank Indonesia. The notes featured a Sudirman, backed by various scenes of industry. As a result of this issue, the first 'new rupiah' notes of 'Sudirman', were withdrawn from circulation. The 1 and 2 1/2 notes were issued from January 1968, notes 5 - 1000 from January 1969, and the 5,000 and 10,000 from April 1970. The 1000, 5000, and 10,000 notes were withdrawn in 1977, while the 100 and 500 rupiah notes remained valid until 1988. Notes below 100 rupiah were withdrawn in Indonesia permanently from 1975.

Coins were reintroduced as of January 1 1971, with 1, 2 and 5 rupiah denominations (dated 1970), plus 10, 25 and 50 rupiah pieces (dated 1971) with 100 rupiah coins follwing in 1973. These replaced low-value banknotes.

The 1,000, 5,000 and 10,000 rupiah notes were re-designed in 1975 as an anti-counterfeiting measure against fake notes of the Sudirman series.[7] The 100 and 500 rupiah were re-designed in 1977. Another new design for the 10,000 rupiah came dated 1978, while the 1,000 and 5,000 rupiah were re-designed in 1980. The 500 rupiah was updated dated 1982. An entirely new set of notes was added in 1984 in all denominations from 100 to 10,000 rupiah. 1992 re-designed the notes again, adding a 20,000 rupiah, changing the design, but maintaining colour and size of the 1984 notes in each denomination. From this issue, the notes carried in small text in addition to the date of authority "Direksi 1992", the year of printing. These notes continued to be printed until 1998.

In 1993 a 50,000 rupiah note celebrating "25 Years of Development" in polymer (limited to five million, and in a presentation pack explaining the 25-year growth plan since 1969) and paper was issued. The design featured Soeharto on the front and Soekarno-Hatta airport on the back, with a plane taking off to symbolise Indonesia's growth. The paper notes were imprinted 1993 and 1994, and featured a hologram.

The 1992 20,000 rupiah notes were re-authorised 'Direksi 1995', as were the 1993 50,000 paper rupiah notes. Both were imprinted until 1998.

The Asian financial crisis of 1997-1998 reduced the rupiah's value by over 80% in a few months and was a major factor in the overthrow of President Suharto's government. The rupiah had traded at about 2000-3000 rupiah per 1 USD, but reached a low of 16,800 rupiah per dollar in June 1998. The currency, which had been relatively stable in prior years, had its value destroyed. The government did not take any action to demonetise or revalue the banknotes, "Direksi 1998" merely redesigned the 10,000 and 20,000 rupiah notes, but 1999 saw a newer higher denomination note, a reflection of the 75% drop in the exchange value of the currency.

"Direksi 1999" saw a new Sudirman design for the 50,000 rupiah, and the new polymer 100,000 rupiah note. Polymer was chosen because, according to Bank Indonesia, plastic would be harder to counterfeit and would last longer. However, the notes were not popular in banks as counting machines were unable to count them accurately and there have been issues with the money sticking to one another due to the heat of the machine.

"Direksi 2000" brought a new 1,000 rupiah note, with the 100 and 500 rupiah notes having been discontinued due to the dramatic devaluation of Indonesia's currency.

"Direksi 2001" redesigned the 5,000 rupiah, while "Direksi 2004" brought an end to the polymer 100,000 rupiah notes, replacing with a paper design, as well the issue of a new more secure 20,000 rupiah note.

The most recent changes to Indonesian money were "Direksi 2005", which re-designed the 10,000 and 50,000 rupiah note.

Pre-1997 notes are no longer legal tender, due to the lack of security features and association with the Suharto regime, but can be exchanged in Bank Indonesia offices until 2010. However due to the low value of most of the notes, they remain in circulation, as low denomination money tends to remain outside the banking system for use in informal transactions. As the smallest current note is worth approximately US$0.10, even small transactions such as bus fares are typically conducted with notes, and the 1,000 rupiah note is far more common than the 1,000 rupiah coin.

The 10,000 rupiah notes and above all exist in two circulating designs. However, the 2004 and 2005 series are gradually replacing the 1998 and 1999 series.

The rupiah is a freely convertible currency, but trades at a discount compared to its PPP-based valuation, due to continued high inflation. As of February 2008, 1 USD is worth approximately Rp 9300. Inside Indonesia the preferred currency for exchange is the US dollar. Other currencies are typically subject to a wide exchange spread.

Coins

From 1991, a new coinage was introduced consisting of 25, 50, 100, 500 and 1000 rupiah coins. 200 rupiah pieces were introduced in 2003.

There are presently two series of coins in circulation: aluminium bronze and bi-metallic coins from 1991-1998 and light-weight aluminium coins from 1999 onwards. Due to the low value and general shortage of small denomination coins (below 100 rupiah), it is common to receive sweets in lieu of the last few rupiah of change in supermarkets and stores[citation needed].

Indonesian rupiah coins [8]
Value Series Diameter Thickness Weight Material Obverse Reverse Availability
Rp 1 1970 22 mm 1.4 mm 1.42 g Aluminium Sikatan Bird Nominal "1" None (Worth ~$0.0001)
Rp 25 1991 18 mm 1.98 mm 1.22 g Garuda Pancasila Nutmeg Fruit and nominal "25" Low
Rp 50 1999 20 mm 2 mm 1.36 g Nominal "50" and Kepodang Bird High
Rp 100 1999 23 mm 2 mm 1.79 g Nominal "100" and Palm Cockatoo Bird
Rp 200 2003 25 mm 2.3 mm 2.38 g Nominal "200" and Bali Starling Bird
Rp 500 1991 24 mm 1.8 mm 5.29 g Aluminium Bronze Nominal "500" and Jasmine Flower Low
1997 1.83 mm 5.34 g Medium
2003 27 mm 2.5 mm 3.1 g Aluminium High
Rp 1,000 1993 26 mm 2 mm 8.6 g Bi-metal, Nickel and Aluminium Bronze Palm Tree and nominal "1000" Low

Banknotes

Legal tender Indonesian rupiah banknotes [9]
Value Series Size Dominant color Obverse Reverse Watermark Value's First Year Availability
Rp 1,000 2000 141 × 65 mm² Blue and green Captain Pattimura Mutiara and Tidore Islands Tjut Njak Meutia 1968 High
Rp 5,000 2001 143 × 65 mm² Green and brown Tuanku Imam Bonjol Weaving craft woman Tjut Njak Meutia 1968
Rp 10,000 1998 148 × 72 mm² Brown and violet Tjut Njak Dhien Segara Anak Lake Wage Rudolf Soepratman 1964 Medium
2005 145 × 65 mm² Violet Sultan Mahmud Badaruddin II The traditional Limas House of South Sumatra Sultan Mahmud Badaruddin II High
Rp 20,000 1998 152 × 72 mm² Green Ki Hadjar Dewantara Studying student in class Ki Hadjar Dewantara 1992 Medium
2004 147 × 65 mm² Green Otto Iskandar Di Nata Tea plantation Otto Iskandar Di Nata High
Rp 50,000 1999 152 × 72 mm² Violet, yellow and green Wage Rudolf Soepratman Displaying/rising a flag H.O.S. Cokroaminoto 1993 Medium
2005 149 × 65 mm² Blue I Gusti Ngurah Rai Beratan Lake in Bali I Gusti Ngurah Rai High
Rp 100,000 1999 151 × 65 mm² Yellow, pink, brown, red and green Sukarno and Mohammad Hatta Parliament building in Jakarta Garuda Pancasila and the logo of Bank Indonesia 1999 Medium
2004 Red Wage Rudolf Soepratman High

Security features

Collection of 50,000 rupiah bills clearly displaying the security threads.
  • The materials of the banknotes basically are long fibres from any kind of wood, or a mix of different types of wood. However, the preferable material is the Abaca fibre, which is naturally plentiful in Indonesia and is believe to increase the durability of the banknotes. The banknotes are made with the process of heating, to create a unique type of pulp.
  • The minimum security features for naked eyes are watermarks, electrotypes and security threads with color fibres. In addition to this, extra features may be included, such as holograms, Irisafe, iridescent stripes, clear windows, metameric windows and gold patches.
    • Watermark and Electrotype are made by controlling the gap of density of the fibres which create certain images for the banknotes. This is done to raise the quality of the notes from the aesthetic view.
    • Security threads are put in the middle of the note's materials so horizontal and vertical lines are shown from top to bottom. The threads also can be made with many variations such as the materials, size, color and design.
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Commemorative coins

Although circulating coins in Indonesia have never been made from precious metals, a number of special issues have been made since coins were reintroduced to Indonesia in 1970 from either silver or gold. As commemorative coins, they were all sold above their intrinsic value, and also above their nominal value.

All the coins struck are proof coinage, with the exception of the 0.5 silver 1974 WWF series, and some of the 1974 WWF gold komodo dragon coins.

The following issues have been made:

Indonesian Commemorative coins
Issued Reason for Issue Material Nominal Value Diameter Thickness Purity Weight Obverse Reverse Mintage limits Notes Approximate metal value as of March 2008
1970 25 years of Independence Silver Rp 200 0.999 8g "1945 -1970" "200 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Greater Bird of Paradise 5100 $5
Rp 250 10g "1945 -1970" "200 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Statue of Manjusri from Tumpang Temple, Malang 5,000 $6
Rp 500 20g "1945 -1970" "500 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Female Wayang Dancer 4,800 $12
Rp 750 30g "1945 -1970" "750 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Balinese Eagle Carving 4,950 $18
Rp 1,000 40g "1945 -1970" "1000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Sudirman 4,250 $24
Gold Rp 2,000 18mm 0.900 4.93g "1945 -1970" "2000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Greater Bird of Paradise 2,970 Year coins re-started in Indonesia $136
Rp 5,000 30mm 12.34g "1945 -1970" "5000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Statue of Manjusri from Tumpang Temple, Malang 2,150 $341
Rp 10,000 40mm 24.68g "1945 -1970" "10000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Female Wayang Dancer 1,440 $681
Rp 20,000 50mm 49.37g "1945 -1970" "20000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Balinese Eagle Carving 1,285 $1,363
Rp 25,000 54mm 61.71g "1945 -1970" "25000 RUPIAH" "1970" Garuda Pancasila "REPUBLIK INDONESIA" "25 TAHUN KEMERDEKAAN" Sudirman 970 $1,703
1974 WWF endangered animals awareness Silver Rp 2,000 38.61mm 2.75mm 0.925 28.28g "BANK INDONESIA" "1974" Garuda Pancasila Javan Tiger "Rp 2000" 18,0000 proof Coins minted by Royal Mint. Similar coins issued in 11 other countries $14
0.500 25.65g 43,000 $7
Rp 5,000 42mm 2.87mm 0.925 35.00g Orangutan "Rp 5000" 17,000 proof $19
0.500 32.00g 43,000 $9
Gold Rp 100,000 34mm 2.49mm 0.900 33.437g Komodo Dragon "Rp 100000" 5,333 plus 1,369 proof $923
1987 WWF 25 years Silver Rp 10,000 36mm 0.925 19.44g "BANK INDONESIA" "1987" Garuda Pancasila Babirusa "Rp 10000" 25,000 Minted by Royal Mint. Similar coins issued in 16 other countries $11
Gold Rp 200,000 25mm 0.917 10g Javan Rhinoceros "Rp 200000" 5,000 $281
1990 70 Years of Save The Children Silver Rp 10,000 36mm 0.925 19.44g "BANK INDONESIA" "1990" Garuda Pancasila "SAVE THE CHILDREN" "10000 RUPIAH" 2 Children playing badminton 20,000 Similar coins in 22 other countries $11
Gold Rp 200,000 25mm 0.917 10g "SAVE THE CHILDREN" "200000 RUPIAH" Balinese Dancer 3,000 Similar coins in 12 other countries $281
1990 45 Years of The Republic Gold Rp 125,000 0.9583 8g Garuda Pancasila "1990" "BANK INDONESIA Museum Joang 45 (Museum of Struggle) "125000 RUPIAH" 16,000 $235
Rp 250,000 17g "NUSANTARA" "1945-1990" "250000 RUPIAH" Map of Indonesia 16,000 $500
Rp 750,000 45g Garuda Pancasila with text "ANGKATAN 45" and wreath of rice and cotton. "750000 RUPIAH" 16,000 $1,323
1995 50 years of The Republic Gold Rp 300,000 25mm 1.85mm 17g "BANK INDONESIA" "1995" "300000 RUPIAH" Garuda Pancasila "50 TAHUN R.I." Soeharto speaking to the people 3,000 sets $500
Rp 850,000 35mm 2.78mm 50g "BANK INDONESIA" "1995" "850000 RUPIAH" Garuda Pancasila "LIMA PULUH TAHUN KEMERDEKAAN REPUBLIK INDONESIA" Soeharto $1,470
1999 50 Years of UNICEF Silver Rp 10,000 38.61mm 0.925 28.28g "BANK INDONESIA" "1999" Garuda Pancasila "FOR THE CHILDREN OF THE WORLD" "Rp 10000" Boy and Girl Scout planting one of a million trees 25,000 Similar coins issued in other countries $16
Gold Rp 150,000 22mm 0.9999 6.22g "FOR THE CHILDREN OF THE WORLD" "Rp 150000" Boy on kuda lumping (Javanese bamboo horse for dancing) 10,000 Similar coins issued in other countries $191
2001 100 years since birth of 'Bung Soekarno' Silver Rp 25,000 38.61mm 0.925 28.28g "BANK INDONESIA" "2001" Garuda Pancasila "100 TAHUN BUNG KARNO (1901-2001)" "Rp 25000" Sukarno in profile 500 $16
Gold Rp 500,000 28.2mm 0.9999 15g "100 TAHUN BUNG KARNO (1901-2001)" "Rp 500000" Sukarno facing 500 $460
2002 100 years since birth of 'Bung Hatta' Silver Rp 25,000 38.61mm 0.925 28.28g "BANK INDONESIA" "2002" Garuda Pancasila "SATUABAD BUNG HATTA (1902-2002)" "Rp 25000" Hatta looking left 2,000 $16
Gold Rp 500,000 28.2mm 0.9999 15g "SATUABAD BUNG HATTA (1902-2002)" "Rp 500000" Hatta looking right 2,000 $460

See also

References

  1. ^ erols.com
  2. ^ McDonald, Hamish (1980). Suharto's Indonesia. Victoria, Australia: Fontana Books. pp. page 55. ISBN ISBN 0-00-635721-0. {{cite book}}: |pages= has extra text (help); Check |isbn= value: invalid character (help)
  3. ^ Far Eastern Economic Review, 13 February 1965 (cited in McDonald, Hamish (1980). Suharto's Indonesia. Victoria, Australia: Fontana Books. pp. page 55. ISBN ISBN 0-00-635721-0. {{cite book}}: |pages= has extra text (help); Check |isbn= value: invalid character (help) )

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