DEFINITION of IDR (Indonesian Rupiah)
The IDR is the currency abbreviation or the currency symbol for the Indonesian rupiah (IDR). The rupiah is made up of 100 sen, and is often presented with the symbol Rp. The Riau Islands and the Indonesian half of New Guinea both had their own versions of the rupiah at one time, but both have been absorbed by this Indonesian currency. The rupiah is controlled by the Bank of Indonesia.
The rupiah derives its name from its sister currency the Indian rupee and is often referred to as the "perak," which is Indonesian for silver.
BREAKING DOWN IDR (Indonesian Rupiah)
The Indonesian rupiah was first seen in October, 1946. It was substantially revised in 1950, when it received international recognition and replaced all former Dutch, Javanese and Japanese currencies being used in Indonesia.
The rupiah has been the subject of multiple revaluations due to rapid inflation. The first came in the mid-1950s when prices rose by close to 300%, which led to multiple disagreements between policy makers. Eventually in 1959 the currency was devalued by 75%. A few years later prices surged again and the central bank again devalued the rupiah. In the space of 5 years the largest banknote went from 100 rupiah to 10,000 rupiah.
The Asian financial crisis was another volatile period for the rupiah that traded from 2000 rupiah per USD to over 15,000 per USD. because of the broad-based sell-off of most Asian currencies, the central bank did not revalue the rupiah during the crisis. However, ten years later the central bank printed a 100,000 note, which remains the largest denomination.
As of late 2017, the IDR has steadied to trade around 13,000 per USD.