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 name "Rupiah" is derived from the Sanskrit word for silver, rupyakam (रूप्यकम्). 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.
Introduced in 1946 by Indonesian nationalists fighting for independence, the currency replaced a version of the Netherlands Indies gulden which had been introduced during the Japanese occupation in World War II. In its early years the rupiah was used in conjunction with other currencies, including a new version of the gulden introduced by the Dutch.
The Riau islands and the Indonesian half of New Guinea (Irian Barat) had their own variants of the rupiah in the past, but these were subsumed into the national rupiah in 1964 and 1971 respectively (see Riau rupiah and West Irian rupiah).
The current rupiah consists of coins from 50 rupiah up to 1000 rupiah (1 rupiah are officially legal tender but are effectively worthless and are not circulated) and banknotes of 1000 rupiah up to 100,000 rupiah. With US$1 worth 14,356 rupiah (30 November 2018), the largest Indonesian banknote is therefore worth approximately US$6.97.
There are presently two series of coins in circulation: aluminium, bronze and nickel coins dated between 1991 and 2010. These come in denominations of 50, 100, 200, 500, and 1000 rupiah. The older series of coins has been gradually disappearing. Due to the low value and general shortage of small denomination coins (below 50 rupiah), it is common to have amounts rounded up (or down) or to receive sweets in lieu of the last few rupiah of change in supermarkets and stores. . A new series of coins featuring Indonesia's national heroes were issued in 2016 in denominations of 100
-, 200-, 500 and 1000 rupiah.
Currently circulating Indonesian banknotes date from 2000 (1,000 rupiah), 2001 (5,000 rupiah), 2004 (20,000 and 100,000 rupiah), 2005 (10,000 and 50,000 rupiah), 2009 (the new denomination of 2,000 rupiah), 2010 (revised version of the 10,000 rupiah), and 2011 (revised versions of the 20,000, 50,000 and 100,000 rupiah). The 1998–1999 notes have not been legal tender since 31 December 2008 (but were exchangeable until 30 December 2018 at Bank Indonesia). Earlier notes are also no longer legal tender, due to the lack of security features and association with the Suharto regime, but could be exchanged in Bank Indonesia offices until 20 August 2010.
As the smallest current note is worth approximately US$0.08, even small transactions such as bus fares are typically conducted with notes, and the 1,000-rupiah coin is far more common than the 1,000-rupiah note. The government initially announced that this would change, with a 2,000-rupiah note to replace the 1,000-rupiah, with that denomination replaced by a coin. After a long delay, this proposal was revised so that the 2,000-rupiah banknotes were launched by BI (Bank Indonesia) on 9 July 2009, with the banknotes circulating as legal tender from 10 July 2009, but without withdrawing the 1,000-rupiah note.
Due to the low value of the (older series) notes below 1000 rupiah, although they are no longer being circulated, some remain in use in increasingly poor condition, as low denomination 'uang pasar' (literally market money), outside the banking system for use in informal transactions.
Following the issuance of Presidential Decree No. 31 of 5 September 2016, Bank Indonesia introduced seven new banknote designs featuring national heroes: