Indonesia’s rupiah reform: Will it make my Bali holiday more expensive?
Redenomination can improve the country’s economic efficiency and enhance confidence in the currency, but risks driving inflation
[SINGAPORE] In Indonesia, travellers and even locals have long grappled with prices in rupiah that stretch into the millions and billions, making regular purchases seem confusingly expensive.
A cocktail at a high-end beach club in Bali can cost up to 190,000 rupiah (around S$15) while a full-day spa package at a luxury resort there can run up to 1.05 million rupiah (about S$82).
But South-east Asia’s largest economy is finally pressing ahead with plans to reduce the number of zeros on its national currency – a move that would make price tags easier to read, and transactions simpler for consumers.
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