If you are living in, working in, or relocating to Indonesia, one rule shapes almost every financial interaction you will have: the Rupiah Mandate. Since 1 July 2015, Indonesian law has required that virtually all transactions conducted within Indonesian territory, whether cash or non-cash, be made in Indonesian Rupiah (IDR). Over a decade later, this rule is not only still in force, it has been reinforced and expanded, and it now intersects with Indonesia’s near-total shift toward digital payments via QRIS.
The Legal Basis
The core requirement comes from Bank Indonesia Regulation No. 17/3/PBI/2015 on the Mandatory Use of Rupiah in the Territory of Indonesia, issued on 31 March 2015 and effective from 1 July 2015. This regulation implements Law No. 7 of 2011 concerning Currency, which establishes the Rupiah as the sole legal tender for transactions within Indonesia. The regulation restricts the use of foreign currencies in transactions conducted in Indonesia, with the stated aims of deepening the domestic rupiah market, stabilising the rupiah against the US dollar, and supporting broader economic growth.
Since then, the framework has been extended several times, most notably through Bank Indonesia Regulation No. 7 of 2023, which reaffirmed the mandate and tightened rules around price quotations, and the more recent regulation effective March 2025 covering export and import payment arrangements for natural resource exporters. That update increased the mandatory retention period and amount for foreign currency export earnings, while also setting tighter rules on how those retained funds can be used. While this particular change mainly affects exporters in mining, plantation, forestry, and fishery sectors rather than everyday expats, it is a sign that Bank Indonesia continues to actively tighten, not loosen, currency rules.
[ADD – Quick Reference Box]
| Topic | Current Position (2026) |
|---|---|
| Cash transactions in Indonesia | Must be in Rupiah; foreign currency cash transactions are prohibited with limited exceptions |
| Non-cash transactions (cards, transfers, e-wallets) | Must be in Rupiah |
| Price quotations (menus, invoices, websites) | Must be in Rupiah; dual pricing in Rupiah and another currency is prohibited |
| QRIS payments | Processed exclusively in IDR, regardless of which currency your linked account holds |
| New employment contracts (local hires) | Salary must be stated in IDR |
| Strategic infrastructure projects with BI approval | May continue using foreign currency under specific conditions |
Dual Pricing Is Now Explicitly Banned
One important development since the original 2015 rules is that Bank Indonesia has explicitly prohibited “dual price denomination”, meaning a business cannot display prices in both Rupiah and a foreign currency (such as USD) side by side. This prohibition applies to price clauses in invoices, delivery and purchase orders, and offer documents, and it also extends to online publication of prices for products and services. If you run a villa rental, tour operation, or any business that historically quoted prices in US dollars “for convenience,” this is worth reviewing carefully, as it applies to online listings as well as printed materials.
Enforcement: Banks, QRIS, and Real-World Cases
In practice, the most visible enforcement now happens through the banking and digital payment system rather than through police checks on individuals. All banks are required to inform clients wishing to make payments in foreign currency of the mandatory rupiah use requirements and must request further information regarding the purpose of such payments. If you are transferring foreign currency in or out of an Indonesian account, expect your bank to ask for documentation explaining the purpose of the transaction.
Bank Indonesia has also become more publicly active in enforcing the “must accept Rupiah” side of the rule. In late 2025, Bank Indonesia publicly rebuked a Jakarta bakery after a viral video showed an elderly woman being turned away because she tried to pay in cash and the outlet accepted QRIS only. The central bank’s position was clear: Rupiah is legal tender across the country and cannot be refused as payment. For expats, the practical takeaway cuts both ways: businesses cannot refuse Rupiah cash in favour of digital-only payment, but equally, no business (digital or otherwise) can legally price or accept payment in USD, EUR, AUD, or any other foreign currency for domestic transactions.
QRIS: The Backbone of Daily Transactions
If you are relocating to Indonesia today, QRIS (Quick Response Code Indonesian Standard) will be part of your daily life within days of arrival. Bank Indonesia made QRIS mandatory for all Payment System Service Providers from 1 January 2020, and it is now the unified QR code standard across virtually all digital payment apps and bank accounts in the country. By the end of 2025, QRIS had over 42 million merchant locations nationwide, from high-end malls in Jakarta’s SCBD district to small warungs in Ubud, and it is genuinely difficult to find a business accepting digital payment that does not also accept QRIS.
A few practical points for expats and long-term visitors:
QRIS transactions are processed exclusively in Indonesian Rupiah, so even if your linked account holds foreign currency, your app applies its own conversion rate, which may include a spread or fee. Transaction limits depend on your verification level: unverified or basic accounts are typically limited to IDR 2 million per transaction and IDR 20 million per month, while verified accounts linked to a KITAS or KTP can usually transact up to IDR 10 million per transaction and IDR 40 million per month, with some banks offering higher premium limits. (UPDATE: verify current limits with your specific bank or e-wallet provider, as these are periodically adjusted.)
For visitors and short-term arrivals, QRIS Cross-Border arrangements mean that travellers from Thailand, Malaysia, Singapore, and Japan may in some cases be able to scan Indonesian QRIS codes directly using their home banking apps, with expansion to South Korea, India, and potentially other markets targeted for 2026. If your home country is not yet part of this network, the practical workaround for most newcomers is to open a local e-wallet such as GoPay, OVO, or DANA shortly after arrival and top it up via bank transfer or cash.
Foreign Currency and Expat Employment Contracts
The original 2015 rules around employment contracts remain broadly the same in principle, though the practical landscape has shifted considerably:
For new or renewed local employment contracts signed by an Indonesian entity, salaries must be stated and paid in Rupiah. This has been standard practice for so long now that most expats arriving in 2026 will simply never encounter a local contract denominated in a foreign currency, this is now the norm rather than a transition.
The narrower exception still exists for expats who remain employed and paid by a foreign parent or holding company and are seconded into an Indonesian subsidiary, paid offshore in a foreign currency. This arrangement can still be structured in a way that is exempt from the Rupiah mandate, but it depends heavily on how your specific employment and secondment agreements are written, and on how your employer’s finance and legal teams choose to interpret current regulations. If this applies to your situation, get current advice from a tax or employment lawyer rather than relying on older online guidance, including this article, as the specifics matter enormously.
(UPDATE: the original reference to the Jakarta Interbank Spot Dollar Rate, JISDOR, as the recommended conversion benchmark should be flagged for verification. Bank Indonesia’s reference rate mechanisms have evolved since 2015, and readers handling foreign currency conversions for salary or contract purposes should confirm the currently applicable BI reference rate with their bank or BI directly rather than assuming JISDOR is still the operative benchmark.)
Current Exchange Rate Context
As a general reference point, the Rupiah was trading at approximately IDR 17,755–17,875 to the US Dollar in mid-2026. Exchange rates move daily and sometimes significantly, so always check a live rate (via your bank, a reputable conversion site, or Bank Indonesia’s own published rates) before any transaction where the rate matters, particularly for salary conversions, large transfers, or property transactions.
Penalties for Non-Compliance
The penalty structure from the original 2015 rules remains broadly in place. For non-cash transactions, violations can result in written warnings, an administrative penalty of 1 percent of the transaction value, and in serious or repeated cases, prohibition from being involved in further payment transactions. Separately, a violation of the obligation to quote prices in Rupiah, including the dual-pricing prohibition, can also result in a written warning from Bank Indonesia. Beyond its own sanctions, Bank Indonesia can also recommend that other relevant government bodies impose their own penalties within their respective areas of authority.
For individuals using cash, the original criminal penalties under Law No. 7 of 2011, including potential fines, remain the underlying legal basis, though in practice, for ordinary expats and tourists, enforcement is overwhelmingly handled through banks declining transactions or requesting documentation, rather than through criminal prosecution.
What This Means for You as an Expat
In practical terms for daily life in 2026:
Open a local bank account and at least one Indonesian e-wallet (GoPay, OVO, or DANA) within your first few weeks, as QRIS will be your most common payment method for everything from coffee to motorbike taxis.
If you are paid by an overseas employer, talk to your employer’s finance team early about how your secondment status is structured, and get independent advice if your situation is not a straightforward local hire.
Do not be alarmed if a business will not quote you a price in USD or EUR, even informally. This is not the business being unhelpful, it is the law.
If you are running a business, especially one serving tourists in Bali, review your website, menus, and contracts for any lingering dollar-denominated pricing. This is one of the more commonly overlooked compliance gaps among long-established expat businesses.
Frequently Asked Questions
Can I pay in US dollars at hotels or restaurants in Bali?
No. Despite Bali’s large international tourist market, Indonesian law requires that domestic transactions be conducted in Rupiah, and businesses are prohibited from quoting or accepting payment in foreign currency for transactions within Indonesia, with very limited exceptions for specific approved categories such as certain strategic infrastructure projects.
Is it illegal to display prices in USD on a website or menu in Indonesia?
Yes, displaying prices in a foreign currency alongside or instead of Rupiah (“dual pricing”) is prohibited under current Bank Indonesia rules, and this applies to online listings as well as printed materials.
Do I need a local bank account to use QRIS?
Most QRIS apps in Indonesia are tied to a local bank account or e-wallet such as GoPay, OVO, or DANA. Some international visitors from certain ASEAN countries and Japan may be able to use cross-border QRIS through their home banking apps, but this is not yet universal.
Will my new employment contract in Indonesia be in Rupiah or my home currency?
For local employment contracts with an Indonesian company, salaries must be stated and paid in Rupiah. Foreign-currency arrangements are generally only possible if you remain formally employed and paid by an overseas parent company and are seconded to Indonesia, and even then this depends on the specific structure of your contract.
What happens if a business refuses to accept Rupiah cash?
Refusing Rupiah cash as payment is against Bank Indonesia’s rules, and the central bank has publicly intervened in cases where digital-only businesses turned away customers paying in cash.
