What is ‘IDR’
Indonesian rupiah, or idr, is the Currency of Indonesia. It is divided into 100 sen, issued by the Bank of Indonesia.
The Indonesian rupiah took its name from its sister currency, the Indian rupee. Riau Islands and the Indonesian half of New Guinea both had their own versions of the Rupiah at one time, but it is the Indonesian currency.
After the global financial crisis of 2008, the Indonesian rupiah generally traded in the range of 9,500 and 14,000 rupees per U.S. dollar.
History Indonesian rupiah
The Indonesian rupiah was first introduced in October 1946, more than a year after Indonesia declared its independence after Japan’s surrender after the Second World War. The currency traded on the black market while the Netherlands tried to regain control over its former colony. In 1950, the Netherlands acknowledged Indonesian sovereignty and the Indonesian rupiah was officially recognized by the international community as a legitimate means of payment in the country. The Indonesian rupiah has replaced all former Dutch, Javanese and Japanese currencies being used. At its introduction, the Euro was trading at the rate of 3.8 rupee per 1 US dollar.
The government created the monetary system lasted only until January 1952. Devaluation to 11.4 rupee for 1 US dollar in February, along with export duties on certain goods. The government continued to issue restrictions on currency exchange through 1954 in an attempt to maintain its preferred level of reserves. Another devaluation in 1959 caused a period of very high inflation, reaching in 1965 635%. In response, the government devalued the currency by issuing new rupee for 1 to 1000 level. Some courses have co-existed at the time, so resetting the official exchange rate to 0.25 Indonesian rupiah per 1 U.S. dollar was virtually meaningless in practice.
The rise of the Suharto regime, the stabilization of the economy, as a result of inflation back to low single digits in the early 1970-ies. In August 1971, the government pegged the currency at 415 Indonesian rupiah per 1 U.S. dollar. Continued problems with inflation has forced the government to abandon the peg in 1978. Between that time and 1986, the government used a dirty float policy, the publication of the daily rate. Economic pressure from overvaluation and an excess of oil in the 1980-ies caused a further devaluation. Increased pressure from the Asian financial crisis in the late 1990s caused the Central Bank of the currency to free floating in 1997, causing a rapid drop in their value. While he showed some signs of stability, leading in the early 2000-ies, the global financial crisis of 2008 has renewed pressure on the country’s economy, leading to a slow but steady decline since that time.