For many foreign entrepreneurs operating in Bali, quoting prices in US Dollars or Euros feels like a natural hedge against currency fluctuation. Whether you run a luxury villa in Uluwatu or a digital consultancy in Canggu, presenting stable currency figures to international clients seems logical.
However, this common practice puts you directly in the crosshairs of Indonesian regulators, who strictly enforce the mandatory use of Rupiah for domestic transactions.
The application of Indonesia’s currency regulations is often misunderstood by expatriates in Bali who assume rules only apply to cash. In truth, the regulations cover online listings, contract values, and even non-cash settlements for any business operating on Indonesian soil.
Ignoring these rules puts you at risk of violating the Bali foreign currency payment ban, a compliance pitfall that carries significant legal weight under the strict monitoring of Bank Indonesia.
Safeguarding your business requires more than just changing the currency symbol on your invoices. It demands a structural shift in how you price services, draft contracts, and process payments to ensure full compliance without alienating your global customer base.
This guide breaks down the legal backbone of the mandate, identifies who is most at risk, and provides a step-by-step roadmap to managing your revenue streams legally in 2026.
Table of Contents
- Legal Backbone: Understanding Law No. 7 of 2011 in Bali
- Scope of the Ban: What is Prohibited in Practice
- The Website Trap: Online and Dual Pricing Risks
- Exemptions: When Foreign Currency is Allowed
- Business Impact: Sectors Most at Riskin Bali
- Real Story: The Close Call in Pererenan
- Penalties and Enforcement Signals
- Step-by-Step Compliance Process for Bali Business
- FAQs about Indonesia’s Currency Rules
Legal Backbone: Understanding Law No. 7 of 2011 in Bali
The foundation of the currency mandate lies in Law No. 7 of 2011 on Currency, specifically Articles 21 and 33. This law establishes the Rupiah as the sole legal tender for all payment transactions, settlement of obligations, and financial activities conducted within the territory of the Republic of Indonesia.
This isn’t a new policy, but enforcement has tightened significantly with Bank Indonesia Regulation No. 17/3/PBI/2015.
The regulation is territorial, meaning it applies to everyone within Indonesia’s borders. This includes foreign individuals, local PT companies, and foreign-owned PT PMA entities.
The misconception that foreign ownership grants an exemption is dangerous. If your business entity is registered in Indonesia or the transaction occurs here, the currency laws apply to you.
Bank Indonesia (BI) Circular No. 17/11/DKSP further clarifies that business actors must strictly adhere to Rupiah pricing. This legal framing makes it clear: your business is not being singled out or “banned from dollars globally,” but it is required to treat the Rupiah as the only lawful tender for onshore pricing and payments.
Scope of the Ban: What is Prohibited in Practice
In practice, the prohibition is comprehensive. You cannot refuse Rupiah payments, nor can you demand foreign currency for any transaction conducted domestically.
This scope extends beyond handing over cash; it covers all non-cash mechanisms, including credit card swipes, bank transfers, and e-wallet settlements. If the transaction settles an obligation in Indonesia, it must be in IDR.
Crucially, the regulation dictates that prices must be displayed only in Rupiah. This is where many businesses fail.
Dual quotation—listing a price in IDR alongside a USD equivalent—is explicitly prohibited if it effectively acts as a foreign currency price. Regulators view this as an attempt to bypass the Bali foreign currency payment ban by indexing prices to a foreign standard.
Even providing a “reference” price in USD can be risky if it appears to be a second official price. The intent of the law is to protect the sovereignty of the Rupiah.
Therefore, listing a villa rental as “$200 per night” on a billboard in Seminyak or a brochure in a hotel lobby is a direct violation, regardless of how the payment is eventually processed.
The Website Trap: Online and Dual Pricing Risks
The digital realm is a primary target for enforcement. In one documented case, police investigated a PT PMA for listing USD equivalents next to IDR prices on their website.
Authorities treated this dual display as a de-facto foreign currency quotation, triggering scrutiny under national currency laws.
For businesses like hotels, visa agencies, and SaaS providers, this presents a unique challenge. You may be used to marketing to a global audience accustomed to dollar pricing.
However, if your website is operated by an Indonesian entity, the pricing page must lead with Rupiah.
Law firm guidance emphasizes that even digital “reference” amounts must be carefully managed. If a user sees a fixed USD price that converts to a different IDR amount daily, you are effectively trading in forex, not Rupiah. Compliance means the IDR price must be the fixed, contractual amount, not the other way around.
Exemptions: When Foreign Currency is Allowed
While the rule is strict, PBI 17/3 does provide specific exemptions. The most relevant for businesses are international trade transactions.
This covers the export and import of goods and genuine cross-border services. For example, if you are a Bali furniture manufacturer exporting to Europe, your invoice to the overseas buyer can be in Euros.
Another key exemption involves transactions where one party is domiciled abroad. However, this is nuanced. Grants from abroad or specific state budget transactions are exempt, as are permitted money changer operations.
But be careful: a tourist paying for a hotel room is not considered a cross-border transaction just because they are a foreigner. The service is rendered in Indonesia, so the mandate applies.
It is vital to distinguish between onshore domestic transactions and genuine cross-border deals. A service delivered locally (like a spa treatment or legal consult in Denpasar) does not qualify for exemption simply because the client holds a foreign passport.
Business Impact: Sectors Most at Riskin Bali
Certain sectors face higher exposure due to ingrained habits. The hospitality industry is the most obvious; villas and hotels have a long history of quoting in USD. With the Bali foreign currency payment ban enforcement ramping up, keeping “USD Price Lists” on booking forms is a high-risk strategy.
Professional services are also vulnerable. Visa agencies, lawyers, and business consultants often quote retainers in dollars to foreign clients.
If these invoices are issued by an Indonesian PT PMA, they violate the currency law. Similarly, SaaS companies selling digital products from Indonesian servers must ensure their checkout flows do not default to foreign currency for domestic users.
Importers and exporters face a mixed landscape. They must strictly separate their domestic invoicing (which must be Rupiah) from their international contracts.
The key angle to understand is that any business with an online sales funnel and foreign clients is at high risk of “accidental” non-compliance if their digital footprint hasn’t been audited.
Real Story: The Close Call in Pererenan
Maria sat in his Pererenan office, the humid air thick with the scent of jasmine and the low hum of a laptop fan. For two years, his digital agency had thrived by quoting high-end European clients in Euros—a move he thought was smart business.
That illusion shattered when a registered letter from the regional monitoring office arrived, flagging his website for “Dual Quotation” violations and threatening a IDR 200 million fine.
Panic set in as he faced the possibility of a license suspension. He immediately reached out to conduct an emergency audit of his digital assets.
We helped him restructure his pricing strategy, converting his official listings to Rupiah while implementing a compliant Love Bali payment integration for local fees and a compliant “currency view” widget for international visitors.
Maria avoided the fine and now operates with a system that satisfies both the regulators and his European clientele. He learned that respecting the local currency regulations didn’t mean losing international business; it meant professionalizing his operations to meet the standards of a maturing market.
Penalties and Enforcement Signals
Non-compliance extends beyond administrative complications; it carries the serious risk of criminal sanctions. Under Article 33 of Law 7/2011, violations can lead to up to one year of imprisonment and fines of up to IDR 200 million for failing to use Rupiah where required. This makes the Bali foreign currency payment ban a matter of personal liability for company directors.
On the administrative side, Bank Indonesia rules allow for written warnings, fines of up to 1% of the transaction value (capped at IDR 1 billion), and even recommendations to revoke business licenses. Authorities are empowered to inspect invoices, cash registers, and websites.
This is not a theoretical regulation. Enforcement signals show that BI, police, and sector regulators actively collaborate to verify compliance. A single viral post or a disgruntled client report can trigger an inspection of your entire pricing history.
Step-by-Step Compliance Process for Bali Business
Managing this risk requires a systematic approach.
Step 1: Map Transaction Points. List every place your price appears: website, contracts, invoices, and booking engines. Identify which transactions are truly “in the territory of Indonesia.”
Step 2: Standardize Rupiah Pricing. Set a single official IDR price for your services. Ensure all invoices issued by your PT PMA show the Rupiah amount as the contractual obligation.
Step 3: Fix Marketing Content. Remove fixed dual prices (e.g., “IDR 15 Mil / USD 1,000”) from brochures and menus. If you need to show foreign currency, use live rate converter widgets that are clearly marked as estimates.
Step 4: Align Payment Methods. Ensure your payment gateways settle in Rupiah to your Indonesian bank accounts. If you use foreign payment service providers (PSPs), consult with professionals to ensure the structure doesn’t violate onshore settlement rules.
Step 5: Update Contracts. Revise your terms and conditions to specify Rupiah as the contract currency. You can use exchange rate clauses for internal calculations, but the legal invoice must be in IDR.
FAQs about Indonesia’s Currency Rules
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Can I quote prices in USD if I write "rates subject to change" on my website?
No. Listing a fixed foreign currency price is prohibited for domestic businesses. You should list the IDR price as the fixed amount to comply with the Bali foreign currency payment ban.
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Does the mandate apply to transactions between two foreign tourists?
Generally, private transactions between foreigners are less scrutinized, but if a business transaction occurs in Indonesia (e.g., selling a bike), the law technically requires Rupiah.
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Can I accept USD cash if I have a money changer license?
Yes, licensed money changers are exempt for the specific purpose of exchanging currency, but you cannot run a restaurant and accept USD cash for food directly.
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Are my export contracts affected by this ban?
No. International trade transactions (exports/imports) are explicitly exempt and can be conducted in foreign currency.
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What if my client insists on paying in USD via bank transfer?
Your Indonesian bank will likely auto-convert incoming USD to IDR upon receipt. Ensure your invoice is in IDR so the tax reporting matches the received amount.
