Indonesian Rupiah

The Indonesian rupiah is the official currency of Indonesia. The rupiah is subdivided into 100 sen, although coins denominated in sen have not been issued since 1987. The rupiah is issued by the Bank of Indonesia. The word "rupiah" is derived from the Sanskrit word for silver, rupyakam. The name was chosen because back in the colonial days, when Indonesia was a Dutch colony, the currency was called "duit" which was also derived from Sanskrit. The word "rupiah" was officially adopted as the name of the currency in 1949. The rupiah has been subject to high inflation for many years. In the early 2000s, the inflation rate was around 10% per year. This high inflation rate was caused by a combination of factors, including high oil prices, government spending, and a weak currency. The inflation rate has been slowly decreasing since then, and as of 2016, it is around 4%. The exchange rate of the rupiah has also been quite volatile. In 1997, during the Asian financial crisis, the rupiah's value against the US dollar fell by more than 80%. It has since recovered somewhat, but is still quite volatile. As of 2016, one US dollar is worth around 13,600 rupiah. The Indonesian rupiah is not a widely-used currency outside of Indonesia. However, it is sometimes used in neighboring countries such as East Timor and Papua New Guinea.