IDR is an acronym that stands for Indonesian Rupiah. It is the official currency of Indonesia, the Southeast Asian country located between the Pacific and Indian Oceans.
The IDR is issued and controlled by the central bank of Indonesia, known as Bank Indonesia. It is denoted by the symbol "Rp" and is subdivided into smaller units called sen. However, due to low value and inflation, sen coins are not commonly used and transactions are typically rounded to the nearest whole rupiah.
The IDR has been the currency of Indonesia since 1946, replacing the Dutch East Indies guilder. Its exchange rate is determined by the foreign exchange market, and the currency is traded under the abbreviation IDR.
The Indonesian Rupiah is important for both domestic and international financial transactions. Within Indonesia, it is widely accepted as a means of payment for goods and services. It is also used for investment purposes, as well as being the main currency for Indonesian bonds and stocks. Internationally, the IDR is traded in the foreign exchange market and is subject to exchange rate fluctuations against other major currencies like the US dollar, euro, or Japanese yen.
The Indonesian Rupiah plays a crucial role in the country's economy, affecting trade, exports, and imports. It is utilized in various sectors, such as tourism, manufacturing, agriculture, and services. The value of the IDR can have significant impacts on the cost of living, inflation rates, and overall economic stability within Indonesia.
