IDR Exchange Rate
Ah, Indonesia: home to world’s largest Muslim population, the most islands of any nation, and a volcano that spews blue gas. True.
What influences the USD/IDR exchange rate?
The IDR/USD exchange rate often moves in tandem with the currencies of other emerging markets. U.S. President Donald Trump’s protectionist policies could further dampen the outlook for the Indonesian rupiah, especially if he alters critical trade agreements.
Indonesia adheres to the floating exchange rate system, like the United States, in order to maintain financial stability. Because of Indonesia’s thriving service sector exports and a young, growing labor force, its central bank may intervene to ensure the currency maintains the inflation target. Rather than pegging the IDR exchange rate to a specific level, Bank Indonesia focuses on minimising rate volatility.1
The relative interest rate differential between the two countries can also influence the USD/IDR exchange rate.
“U.S. bilateral goods trade with Indonesia totaled almost $27 billion in 2015, while bilateral trade in services with Indonesia exceeded $3 billion.” – US Department of State2
According to the United Nations, Indonesia is the 4th most populous country in the world--just behind the U.S. By area, the U.S. ranks 4th while Indonesia ranks 15th.
In Southeast Asia, Indonesia is the largest economy. The nation is also the 10th largest economy by purchasing power in the world.2
Indonesia was ranked 16th in GDP in 2015, while the United States came in 1st.3
Indonesia’s largest sectors are agriculture (including palm oil, rubber, cocoa, and coffee), mining and manufacturing (including coal, oil, gold, footwear, furniture, paper products, electronics, and automobiles), and services.4
US exports to Indonesia include food and agricultural items, equipment and machinery, chemicals, and transportation equipment, such as aircraft. Imports from Indonesia include apparel, rubber, electrical machinery, food products, footwear, and mineral fuel.5
Whether you’re planning a trip to one of Indonesia’s islands or sending money back home to friends and family, OFX can help you save on your international money transfers. If you need to make a payment to Indonesia, use OFX so you don’t get stung by high bank margins and fees. Register today to get access to our low rates and personalized service.
Currency Name: Indonesian Rupiah
Currency Code: IDR
Currency Symbol: Rp
Central Bank: Bank Indonesia
Countries Used In: Indonesia
Major Unit: One Rupiah
Minor Unit: One Sen
Note Denominations: Rp 1,000, Rp 2,000, Rp 5,000, Rp 10,000, Rp 20,000, Rp 50,000, Rp 100,000
Coin Denominations: Rp 50, Rp 100, Rp 200, Rp 500, Rp 1000