Indonesian Rupiah Currency

Overview

Indonesian Rupiah is the weakest currencies and the currency confronts high fluctuations with slightest movements in the market and issues such as oil prices, terrorism, religious issues, domestic sovereign conditions and US market fluctuations influence the currency value to a very great extent.

The 1997 Asian financial crisis hit Indonesia to the most; identically the 2002 Bali terror attacks and 2004 tsunami also blew the Indonesian economy making the currency devalued. Indonesia Rupiah is making scanty progress, but is unsafe to invest money.

History

Earlier, Indonesia had coins of gold, bronze, silver and tin before it became a European colony owing to the influence of Chinese, Arabs and Indianized Kingdoms that used the currency for daily transactions.

The Chinese bronze coins was the official Indonesian currency until 13th century and the European troops paved way for many currencies brought from other countries including gold coins from Portugal, Indian rupees, Japanese gold coins and silver dollars from Peru and Mexico. Later on, guilder was considered to be the official currency and also other currencies such as Indian rupees and Spanish silver dollars circulated in association with the guilders.

The guilder sustained until the 20th century and in 1942 WWII, Japan issued Military yen taking over the Dutch colony and denominated in guilders, but was badly stuck and got depreciated.

Guilders were replaced by Indonesian Rupiah as the national currency, but it also depreciated. Yet, the Indonesian Rupiah is facing devaluation and inflation. It was replaced by new rupiah in 1965 valuing 1000 old units for 1 new rupiah.

Structure

The Indonesian Rupiah that is in circulation currently is the second version released in 1965. Bank Indonesia performs the role of Central Bank, but the powers are restricted.

The coinage circulating in 6 denominations are Rp 25, 50, 100, 200, 500 and 1000.in 1970 the first coins were issued and was withdrawn, but in 1991 the second series of coins was in circulation till 1998 and is in circulation with the present series of 2003.

The front sides of the coins have garuda, a mythical bird and the reverse side has symbolic images such as Pala fruit on Rp25, Kepondang bird on Rp50, Kakatua raja on 100, Balinese Jalak bird on 200, Jasmine flower on 500 and Oil palm on 1000.

The bank notes are up to 8 denominations in predominant colors such as Red- Rp 100 & Rp 100000, Green- Rp 500, Rp5000 & Rp 20000, Blue- Rp 1000 & Rp 50000, Purple- Rp 10000. They have images symbolizing the Indonesian tradition and culture and important people related to the history of this country.