To build international and national confidence in the Rupiah, Indonesia implemented Law No. 7 of 2011 on Currency on May 31, 2011. It will ensure the dominance of the Rupiah by requiring that all payments be made in that currency.
The most important section of the currency legislation is Article 21(1), which states that the Rupiah must be used for all transactions below, once it takes place in Indonesia:
- All payment transactions;
- Obligation settlements that uses money; and
- Other financial transactions.
Under the legislation, both the payee and payer can be fined and/or imprisoned for failing to comply. Refusing to accept the Rupiah is a serious crime under the legislation and a maximum fine of RP 200,000,000 will apply. The same penalty applies if a foreign currency is used for payment in Indonesia. Companies must ensure that they conduct their transactions in Rupiah, if the goods are bought or sold in Indonesia or the services are provided in Indonesia.
Pending issuance of the implementing regulations under the Currency Law, we believe businesses can continue following their current practices with regard to currency in which payments need to be made with one exception: if a recipient of a payment requests that it be made in Rupiah, such payment should be made in Rupiah at an exchange rate to be agreed by the parties (assuming the underlying contract is not in Rupiah). If the parties can not agree on the exchange rate, the Bank Indonesia middle rate can be suggested.
It is worth noting that Indonesia has recently adopted the Transfer Fund Law which allows the transfer of any foreign currency to and from Indonesia. Therefore, we can assume that the requirements under the Currency Law do not apply if payments are done by way of transfer.
How to convert Rupiah to Singapore Dollar ?
Easiest way to convert Rupiah to Singapore Dollar is to divide Rupiah Price by 10.000, although currency exchange may be lower, but this way to give Touriest a rough calculation to Singapore Dollar.
- Rp. 1000 – SGD 0.10
- Rp. 10.000 – SGD 1
- Rp. 100.000 – SGD 10
- Rp. 1.000.000 – SGD 100