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94-638: The rupiah ( symbol : Rp ; currency code : IDR ) is the official currency of Indonesia , issued and controlled by Bank Indonesia . Its name is derived from the Sanskrit word for silver , rupyakam ( रूप्यकम् ). Sometimes, Indonesians also informally use the word perak ( ' silver ' in Indonesian ) in referring to rupiah in coins. The rupiah is divided into 100 cents ( Indonesian : sen ), although high inflation has rendered all coins and banknotes denominated in cents obsolete. The rupiah

188-828: A Roman pound of silver. Newly invented currencies and currencies adopting new symbols have symbolism meaningful to their adopter. For example, the euro sign € is based on ϵ , an archaic form of the Greek epsilon , to represent Europe; the Indian rupee sign ₹ is a blend of the Latin letter ' R ' with the Devanagari letter र ( ra ); and the Russian Ruble sign ₽ is based on Р (the Cyrillic capital letter 'er' ). There are other considerations, such as how

282-673: A petition asking for a conference to be held that would lead to Indonesian self-government as part of a Dutch-Indonesian union over a decade, Parindra was lukewarm, resenting the possibility of Soetardjo succeeding where the other nationalist organizations had failed. The petition was passed by a majority of the Volksraad , but rejected by the Dutch in November 1938. In May 1937, Parindra, the Indonesian People's Movement (Gerindo),

376-413: A 20% tax). This effectively created a freely floating rupiah. The price of the certificates quickly reached 332% of face value by April 1958, i.e. Rp38, a rate at which the government chose to end the free market, fixing the price at 332% of face value. The currency devaluation of large notes in 1959 had the official exchange rate devalued to Rp45 as of August 1959. Despite this, the fundamental issues with

470-586: A Free Indonesia Dormitory to prepare youth leaders for an independent Indonesia. With the war situation becoming increasingly dire, in March 1945 the Japanese announced the formation of an Investigating Committee for Preparatory Work for Independence (BPUPK), comprising members of the older political generation, including Sukarno and Hatta. Chaired by Rajiman Wediodiningrat , in two sessions in May and June, it decided on

564-529: A Rp75,000 banknote to commemorate the 75th Independence Day of Indonesia. The note featured the proclamators of Indonesia's Independence , Sukarno and Mohammad Hatta (who were also featured in the Rp100,000 note). In 2022, the BI predicts that banknotes of this series will cease to be legal tender in 2025 or 2026, with all circulating 2016-series banknotes replaced by newer 2022-series banknotes. Bank Indonesia introduced

658-710: A central role in the Indonesian National Revolution . One of the other changes that had also taken place during the Japanese occupation included the population in Indonesia undertaking military training. Conflict occurred not only with the Dutch, but also when the Japanese tried to re-establish control in October 1945 in Bandung, and furthermore when the British tried to establish control. After

752-402: A declaration worded as follows: Sukarno and Hatta rejected this wording, believing that it had the potential to spark violence and would cause problems for the Japanese as it implied a transfer of sovereignty in violation of the terms of the surrender. Sukarno drafted the final version, which read as follows: This final version contained the phrase "transfer of power", which was acceptable to

846-586: A group of leaders who could ensure continuity if any were arrested. In 1931, Sukarno was released and joined the small Indonesia Party (Partindo) , while in August 1932, Hatta returned from the Netherlands and assumed the leadership of the rival New PNI, which had a more Marxist and revolutionary platform than Partindo. Sukarno was arrested again in August 1933, and was exiled first to Flores , then to Bencoolen , while Hatta and Sjahrir were arrested and exiled to

940-440: A harsh Japanese response. We the people of Indonesia do hereby declare the independence of Indonesia. Matters concerning the transfer of power and other matters will be executed in an orderly manner and in the shortest possible time. Djakarta, 17 August 05 In the name of the people of Indonesia The date of the declaration, "05" refers to " Japanese imperial year ( 皇紀 , kōki ) 2605". Indonesian youths spread news of

1034-578: A new family of banknotes on 18 August 2022. Officially they were retroactively issued as legal tender on 17 August 2022 to commemorate the 77th Independence Day of Indonesia. Similar to the 2016 series, the Indonesian dances and national heroes are still featured on the notes, with some notable changes. Bank Indonesia initiated the Garuda Project, a project to develop Indonesia's central bank digital currency on 30 November 2022 crypto . through

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1128-438: A premium of 5–25% to boost their export. To control foreign exchange, the government brought in a number of measures. About 40% of the foreign-exchange requirements of importers were required to be paid to the government from April 1952, while as from September 1952, the government decided to provide only a limited amount of foreign exchange, made available every four months. These foreign-exchange restrictions, designed to provide

1222-540: A proclamation. Meanwhile, various pemuda groups had heard the surrender rumors and held a meeting. Those present included D. N. Aidit , Chairul Saleh and Wikana . They decided to send a deputation led by Wikana to meet Sukarno at his home and demand an immediate proclamation of independence in person, rather than through the PPKI, which they saw as having no credibility, and which in any case had no pemuda members. In an angry exchange, Sukarno refused to do so as besides

1316-533: A revolt in Gorontalo against the Dutch who were afraid of Japanese invasion of Celebes. He was later imprisoned by the Japanese after they had invaded the area. With the outbreak of the war in the Far East , and the initial successes of Japan, in early 1942, the Dutch authorities gave Amir Sjarifuddin money to establish an underground resistance movement and sent Hatta and Sjahrir back to Java. In January 1942,

1410-486: A white paper on its development. By passage of the omnibus law , the digital rupiah is legalised as a form of the rupiah. Historically, currencies of Indonesia have been influenced by the spread of Indian and Chinese cultures. During colonial times, the currency used in what is now Indonesia was the Netherlands Indies gulden . The country was invaded in 1942 by Japan, which began printing its own version of

1504-543: Is placed in the decimal separator position, as in 2 [REDACTED] 50 . Older currency symbols have evolved slowly, often from previous currencies. The modern dollar and peso symbols originated from the mark employed to denote the Spanish dollar , whereas the pound and lira symbols evolved from the letter L (written until the seventeenth century in blackletter type as L {\displaystyle {\mathfrak {L}}} ) standing for libra ,

1598-595: The Boven Digul detention camp in western New Guinea. The detention of these nationalist figures effectively ended the non-cooperation movement, and in December 1935 the moderate Indonesian National Union and Budi Utomo merged to form the Great Indonesia Party (Parindra), which aimed to work with the Dutch to achieve Indonesian independence. When in 1936, Volksraad member Soetardjo submitted

1692-467: The Constitution of Indonesia . The Dutch, as the former colonial power, viewed the republicans as collaborators with the Japanese, and desired to restore their colonial rule, as they still had political and economic interests in the former Dutch East Indies. The result was a four-year war for Indonesian independence. Indonesian youths had played an important role in the proclamation, and they played

1786-532: The Council of Indonesian Muslim Associations (Masjumi) as an umbrella group for Muslims. In 1944, Putera was dissolved and replaced by the Java Service Association ( Jawa Hokokai ), with Sukarno and Hatta given key positions in it, albeit answering to the military governor. Although intended to mobilise the masses for Japanese interests, Sukarno in particular took advantage of his role to tour

1880-636: The International Monetary Fund . During the month, the rupiah fluctuated in the Rp3,300–3,650 range. IMF's response was announced on 1 November 1997. Sixteen small and insolvent banks, holding a market share of 2.5%, would be closed. Private banks would be subject to improved monitoring, and some state banks would be merged. Deposits would be underwritten up to Rp20 million (about US$ 5,500). About 90% of all depositors held less than this amount in their bank accounts. After this announcement,

1974-509: The Mexican financial crisis , and in June and September 1996, from 3 to 5% and then 5 to 8%. These actions had been successful in the past in defending the rupiah, but on this occasion, a more serious crisis of confidence arose. The rupiah immediately fell 7%, with foreign money quickly leaving the country. The investor confidence in Indonesia was shaken, and due to previous deregulations, much of

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2068-531: The 1959 devaluation, inflation, which had been running at 25% per annum 1953–1959, grew exponentially, with rates over 100% in 1962, 1963, and 1964, and 600% in 1965. Despite the official Rp45 to US$ 1 rate, two further export certificate trading systems, of March 1962 – May 1963, and then from April 1964 onwards, showed premiums of 2,678% July 1962 (an effective rate of Rp1,205), 5,100% August 1965 (Rp2,295) and 11,100% in November 1965 (Rp4,995). The last demonetisation of rupiah notes occurred in late 1965 when inflation

2162-538: The 25th Army freed Sukarno from exile in Sumatra, and he joined Hatta and Sjahrir in Jakarta, as Batavia had been renamed. They agreed that Sjahrir would work underground, while Sukarno and Hatta would cooperate with the Japanese, still with the ultimate goal of Indonesian independence. The two men urged the Japanese to establish a popular political organization that they would lead, and this came about in March 1943 with

2256-551: The 50,000 rupiah), but could be exchanged in Bank Indonesia offices until 20 August 2010. As the smallest current note is worth approximately US$ 0.067, even small transactions such as bus fares are typically conducted with notes and the Rp1,000 coin is far more common than the Rp1,000 note. The government initially announced that this would change, with a Rp2,000 note to replace the Rp1,000, with that denomination fully replaced by

2350-508: The Dutch when they reoccupied their colony. At a meeting in Singapore at the end of July, it was decided that Java would become independent at the end of September, followed by other areas. On 6 and 9 August, atomic bombs were dropped on Hiroshima and Nagasaki . On 7 August, the Japanese announced the formation of a Preparatory Committee for Indonesian Independence (PPKI) to accelerate preparations for establishing an Indonesian government for

2444-661: The East Indies, but thanks to a rousing defense speech by Hatta, they were acquitted. Back in the East Indies, in 1927, nationalist and future Indonesian president Sukarno turned his study club into the Indonesian Nationalist Association, which in May 1928 became the Indonesian National Party (PNI). The party aimed to achieve Indonesian independence through mass-based non-cooperation with the authorities. In October 1928,

2538-548: The Foreign Exchange Certificate System (FECS). By the trade-in certificates an export rate of Rp7.6 and an import rate of Rp11.4 was established. The FECS was scrapped on 4 January 1952, by which time the government had been able to reduce its deficit by 5.3 billion rupiah through the exchange differential. The system was scrapped because domestic prices were being determined by the import rate, which were hurting profits from exports earned at

2632-412: The Indonesian stock market was owned by foreign investors. Local confidence in the currency was also undermined as the population followed suit, selling rupiah for dollars. The spot rate soon fell below the selling rate (i.e. outside the 12% exchange rate band). BI attempted to intervene but eventually abandoned the managed float on 14 August 1997, leaving the rupiah to float freely. The rupiah–dollar rate

2726-461: The Japanese as the Japanese language translation of the phrase implied transfer of administrative control, rather than of sovereignty, which could have been seen as a violation by the Japanese of the ceasefire commitment to preserve the status quo . It was also acceptable to the Indonesians, who could interpret this transfer in a wider sense. Meanwhile, the phrase "in an orderly manner" reassured

2820-613: The Japanese invaded the Dutch East Indies, and rapidly overran the archipelago. The Dutch surrendered on 8 March. The Japanese banned the use of the Dutch language as well as the Indonesian flag and anthem , and the Japanese calendar was imposed. The archipelago was administered as three separate regions: Sumatra by the Twenty-Fifth Army , Java and Madura by the Sixteenth Army and Kalimantan and

2914-492: The Japanese military that there would be no interference in a declaration of independence as long as it was not associated with the Japanese, as this would be a breach of the surrender terms. Sukarno and Hatta then went to Maeda's house, now the Formulation of Proclamation Text Museum , where members of the PPKI were waiting, having been told to go there by Subardjo. Earlier that day, the pemuda led by Sjahrir had produced

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3008-463: The PPKI. On 15 August, Japan surrendered , and the Japanese authorities in the East Indies were ordered to maintain the status quo pending the arrival of allied forces. However there was no official confirmation from the Japanese of the surrender. Again there was disagreement between the older generation, including Sukarno and Hatta, who were uncertain how to proceed, and the pemuda , including Sjahrir, who urged Sukarno to declare independence without

3102-597: The Rp10,000), 2011 (revised versions of the Rp20,000, Rp50,000 and Rp100,000) and 2020 (the commemorative Rp75,000 denomination issued 2020). Notes issued in 1998–1999 ceased to be legal tender since 31 December 2008 and were exchangeable until 30 December 2018 at Bank Indonesia. Earlier notes are also no longer legal tender, due to the lack of security features and association with the Suharto regime (especially 1993 and 1995 note of

3196-483: The Triple-A mass movement. Its name was taken from the Japanese propaganda slogan portraying Japan as the leader, protector and light of Asia. However it failed to gain support as no significant Indonesian nationalists were involved, and the propaganda was too heavy-handed. The Japanese then decided that it would be more effective to use pre-war nationalists to mobilize the population in support of their war aims. In July,

3290-481: The amount of foreign exchange that could be sent home, with the amounts allowed out subject to fees of 66 + 2 ⁄ 3 %. As of November 1954, exporters were required to sell 15% of their foreign exchange earned to the government. An increasingly complex set of tariffs on imports was unified in September 1955 with a set of extra import duties, requiring down payments to the government of 50, 100, 200, or 400% of

3384-455: The archipelago making speeches. On 7 September 1944, Japanese Prime Minister Kuniaki Koiso promised independence for the 'East Indies' "later on" ( di kemudian hari ). The authorities in Java then allowed the flying of the Indonesian flag at Jawa Hokokai buildings. Rear-admiral Maeda provided official funds for tours around the archipelago by Sukarno and Hatta, and in October 1944, established

3478-526: The authorities, who arrested Sukarno and seven party leaders in December 1929. They were put on trial for being a threat to public order and in September 1930 received sentences of one to four years – Sukarno received the longest sentence. The PNI dissolved itself in 1931, and in the same year, Sjahrir returned from the Netherlands and established a party called the New PNI which rather than focussing on mass action and being dependent on one leader, aimed to create

3572-611: The banking sector. Although the bank had violated its BMPK (credit limit), Bambang was given permission by BI to buy Bank Alfa, another bank, seen by many as a reward for withdrawing his lawsuit. In effect, the failed bank was reopened under a different name. Currency symbol A symbol may be positioned in various ways, according to national convention: before, between or after the numeric amounts: €2.50 , 2,50€ and 2 [REDACTED] 50 . Symbols are neither defined nor listed by international standard ISO 4217 , which only assigns three-letter codes. When writing currency amounts,

3666-416: The basis for an independent nation and produced a draft constitution . Meanwhile, the younger activists, known as the pemuda , wanted much more overt moves towards independence than the older generation were willing to risk, resulting in a split between the generations. Following the call from the allies for Japan to surrender , the Japanese decided to grant Indonesian independence to create problems for

3760-643: The challenge from Hatta as he knew that only Sukarno and Hatta had the authority to make a credible declaration of independence. Spurred on by this humiliation and the desire to demonstrate the commitment of the pemuda , a decision was taken by a group including Chairul Saleh and Wikana to take action. In the early hours of the morning of 16 August, they took Sukarno and Hatta to the town of Rengasdengklok (today in Karawang Regency , West Java ), ostensibly to protect them from an uprising by Peta troops, but in fact to force them to declare independence. However,

3854-509: The currency on 30 March by 28% to Rp970. At this time, the 1980s oil glut put the Indonesian economy under pressure, with exports uncompetitive as a result of the overvalued currency, and oil contributing less as a result of lower global prices. On 1 June 1983, 'Pakjun 1983' brought deregulation of the banking system, and the end of the meaningless 6% official deposit rate, with a more market-based financial system. Credit ceilings were removed. Interest rates, initially 18%, remained above 15% over

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3948-545: The diplomatic and armed resistance of the Indonesian National Revolution , fighting against the forces of the Netherlands and pro-Dutch civilians, until the latter officially acknowledged Indonesia's independence in 1949. The document was signed by Sukarno and Mohammad Hatta , who were appointed president and vice-president respectively the following day. The date of the Proclamation of Indonesian Independence

4042-589: The document from the Japanese-formed PPKI, only Sukarno and Hatta would sign it. The meeting broke up at 5am. The latin typewriter used to type the proclamation test was borrowed from Korvettenkapitän Dr.jur. Hermann Kandeler, the leader of a Nazi German military stützpunkt in Pasar Senen, Jakarta. This was because only Japanese typewriters were available in Maeda's house. The original plan

4136-399: The end of 1956 was Rp31 to US$ 1, falling to Rp49 at the end of 1957, and Rp90 by the end of 1958. In response to Sumatra and Sulawesi refusing to hand over their foreign exchange, in June 1957, a new system for foreign exchange was introduced; exporters received export certificates (BE) representing the foreign currency earned and could sell them to importers on the free market (but subject to

4230-513: The equivalent coin. After a long delay, this proposal was revised so that the Rp2,000 banknotes were launched by Bank Indonesia (BI) on 9 July 2009, with the banknotes circulating as legal tender from 10 July 2009, but without withdrawing the 1,000-rupiah note. Following the issuance of Presidential Decree No. 31 of 5 September 2016, BI introduced seven new banknote designs featuring national heroes: On 17 August 2020, Bank Indonesia officially introduced

4324-408: The fixed-exchange-rate system and severe import controls (which had cotton mills running at only 11% of capacity due to lack of imported raw materials) were not addressed, and smuggling grew, often backed by the army, while assets were moved offshore by over-invoicing. The government maintained price controls over goods and raw materials, with the official oil price unchanged from 1950 to 1965. After

4418-516: The formation of Putera , the Centre of People's Power. Although it was controlled by the Japanese, it was led by Sukarno, Hatta, Hajar Dewantara and pre-war Islamic figure Mas Mansoer . Like the Triple A, it achieved very little. As the tide turned against Japan and its territorial expansion halted, Japan started to talk of greater Indonesian involvement in the governance of Java, where the 16th Army

4512-502: The government found it harder to maintain the Thai baht peg at ฿25 to US$ 1. By 2 July 1997, Thailand abandoned its defence of the baht, allowing it to float freely. Indonesia, which had massive foreign reserves and was seen as having a strong economy, responded on 11 July 1997, by widening its exchange rate band from 8 to 12%. Indonesia had taken similar actions in the years leading up to the crisis, in December 1995 from 2 to 3%, in response to

4606-404: The government with much-needed reserves, meant that some companies were operating at as low as 20% of capacity, due to lack of needed imported materials. Further foreign-exchange restrictions were introduced over 1953–1954, with April 1953, the foreign-exchange downpayment was increased to 75%, except for raw materials at 50%. Foreign companies and their workers were placed under restrictions as to

4700-446: The gulden , which remained in use until March 1946. The Netherlands authorities and the Indonesian nationalists, who were fighting for independence , both introduced rival currencies in 1946 with the Dutch printing a new gulden, and the Indonesians issuing the first version of the rupiah on 3 October 1946. Between 1946 and 1950 a large number of currencies circulated in Indonesia, with the Japanese gulden still remaining prevalent alongside

4794-484: The involvement of the PPKI to avoid accusations from the Allies that independence was sponsored by Japan. In the afternoon of 15 August, Sukarno, Hatta and BPUPK member and future foreign minister Achmad Soebardjo called on Maeda to ask about the surrender rumours, and received unofficial confirmation that they were true. Hatta then asked Soebardjo to arrange a meeting of the PPKI for the following day and went home to draft

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4888-702: The largest Indonesian banknote is worth about US$ 6.62. Presently, two series of coins are circulating: aluminum, and nickel coins dated between 1999, 2003, and 2010, and a new series of coins featuring Indonesia's national heroes were issued in 2016. These come in denominations of Rp100, Rp200, Rp500, and Rp1,000. Coins in circulation are mostly Rp500 and Rp1,000, whereas the smaller-denominated coins (Rp100 and Rp200) are rarely used, except in shops whose pricing requires them. Currently circulating Indonesian banknotes date from 2000 (Rp1,000), 2001 (Rp5,000), 2004 (Rp20,000 and Rp100,000), 2005 (Rp10,000 and Rp50,000), 2009 (the new denomination of Rp2.000), 2010 (revised version of

4982-700: The location of the symbol varies by language. For currencies in English-speaking countries and in most of Latin America, the symbol is placed before the amount, as in $ 20.50 . In most other countries, including many in Europe, the symbol is placed after the amount, as in 20,50€ . Exceptionally, the symbol for the Cape Verdean escudo (like the Portuguese escudo , to which it was formerly pegged )

5076-399: The lower rate. Hence, the effective Rp7.6/11.4 exchange rate reverted to Rp3.8. The ending of what amounted to an export tariff severely damaged government revenues, and as of 4 February 1952, the rupiah was officially devalued to Rp11.4, with export tariffs of 15–25% on commodities in which Indonesia was strong. Weaker commodities were not subject to tariffs, and from 1955 were actually given

5170-659: The move would not affect its value. In 2015, the government submitted a rupiah redenomination bill to the House of Representatives, but it has not yet been deliberated. In 2017, Bank Indonesia Governor Agus Martowardojo reiterated the call, saying that if redenomination started immediately, the process could be complete by 2024 or 2025. The current rupiah consists of coins from Rp50 up to Rp1,000 (Rp1 coins officially remain legal tender but are effectively worthless and are not encountered in circulation) and banknotes of Rp1,000 up to Rp100,000. With US$ 1 worth Rp15,107.5 as of 3 May 2023,

5264-486: The multiple exchange-rate system remained in place for the time being. This was followed by the emergence of Suharto , who as of 11 March 1966, acquired executive control of Indonesia. Suharto quickly made economic changes, establishing his " New Order ", with the economic policy set by the Berkeley Mafia , his team of US-educated neoclassical economists. The policy began to be set out in November 1966, following

5358-465: The names of currencies in Japanese katakana . They are intended for compatibility with earlier character sets. Proclamation of Indonesian Independence The Proclamation of Indonesian Independence ( Indonesian : Proklamasi Kemerdekaan Indonesia , or simply Proklamasi ) was read at 10:00 Tokyo Standard Time on Friday, 17 August 1945 in Jakarta . The declaration marked the start of

5452-431: The need to discuss matters with the PPKI, he did not want to provoke the Japanese. Hatta subsequently arrived and took the same stance as Sukarno, and pointed out that there was still no official confirmation of the Japanese surrender. He then invited the pemuda to go ahead with a proclamation themselves. Wikana in turn demanded a declaration the following day, 16 August, and the delegation left. Wikana felt humiliated by

5546-556: The occupation of the Netherlands, and the Dutch government in exile was in no position to respond to GAPI's request for a Dutch-Indonesian union and an elected legislature, although Dutch Queen Wilhelmina made a speech in London in May 1941 promising unspecified changes to the relationship with the East Indies after the war. On 23 January 1942, three years before the 1945 proclamation, an independence activist Nani Wartabone declared "Indonesian independence" after he and his people won in

5640-462: The older nationalists as it implied no action by the pemuda , and "in the shortest possible time" was taken by the Indonesians to mean before the Allied forces arrived. Chairul Saleh and other pemuda figures protested ineffectually about the changes, but the majority of the PPKI agreed with the wording. After some debate as to who would sign the proclamation, it was agreed that in order to disassociate

5734-432: The period due to lax credit controls, which was channelled towards favoured groups, such as pribumi , as well as corrupt government-linked businesses. Despite the high inflation of the period, the exchange rate, which had essentially been preserved using the country's oil exports, was maintained at Rp415 until 15 November 1978. By 1978, the combination of a fall in oil prices and a decrease in foreign reserves meant that

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5828-516: The period from 1978 to 1986, the real exchange rate of the Indonesian rupiah fell by more than 50%, providing significant boosts to the competitiveness of Indonesia's exports. Although the devaluations of 1978, 1983, and 1986 had each successfully boosted the competitiveness of exports, devaluations have a destabilising effect, and the September 1986 devaluation was the last carried out by Indonesia. According to research, despite an official seven-currency exchange basket, empirical evidence suggests that

5922-411: The period), and increasing output (for instance the price of oil rose 250 times when the 1950 prices were abandoned, incentivising new exploration). By 1971, inflation had fallen to just 2%. Despite the liberalisation efforts, Indonesia still had multiple exchange rates. A more realistic exchange rate was finally established of 378 (new) rupiah to US$ 1 as of April 1970. In August 1971, the exchange rate

6016-413: The period. By September 1986, the currency had been allowed to steadily fall to 1,134 rupiah, a rate which had largely maintained purchasing power over the period. Despite this, the currency was devalued 30% on 12 September 1986 to 1,664 rupiah to US$ 1. As in 1983, this had been intended to boost the balance of trade: oil prices, US$ 29 in 1983, fell by 50% in 1986 alone, to below US$ 9 per barrel. Thus, in

6110-415: The plan began to evaporate. The rupiah steadily weakened from the middle of November, standing at Rp3,700 per dollar at the end of the month. In December, the crisis turned into a disaster. Much of the Indonesian economy was controlled by relatives of President Suharto, and of the 16 banks to be liquidated, 25% of PT Bank Andromeda was owned by Bambang Trihatmodjo , the second son of Suharto, PT Bank Jakarta

6204-580: The preamble to the draft constitution , which had been written by the BPUPK, was read, then Sukarno, with Hatta by his side, read the proclamation: Kami, bangsa Indonesia, dengan ini menjatakan kemerdekaan Indonesia. Hal-hal jang mengenai pemindahan kekoeasaan d.l.l., diselenggarakan dengan tjara saksama dan dalam tempo jang sesingkat-singkatnja. Djakarta, hari 17 boelan 8 tahoen 05 Atas nama bangsa Indonesia, Soekarno/Hatta. [REDACTED] [REDACTED] PETA officer Latief Hendraningat raised

6298-603: The proclamation across Java almost immediately using Japanese news and telegraph facilities, and in Bandung the news was broadcast by radio. However many ordinary Indonesians either did not believe the reports or saw them as a Japanese deception. In Sumatra, only the republican elite in major cities knew about the proclamation by the middle of September. The day after the proclamation, the Preparatory Committee for Indonesian Independence met and elected Sukarno as president and Hatta as vice-president. It also ratified

6392-467: The reaching of agreement with Indonesia's creditors in October 1966 on debt relief and loan restructuring. Economic policies were put in place to require adequate bank reserves, ending subsidies on consumer goods, end import restrictions, and to devalue the rupiah. The 1966–1970 stabilisation program was a great success, resulting in higher economic growth, boosting legal exports (which grew 70% in US$ terms over

6486-577: The red and white flag of Indonesia and the attendees sung the Indonesian national anthem, Indonesia Raya . An English translation published by the Ministry of Foreign Affairs as of October 1948 included the entire speech as read by Sukarno . It incorporated remarks made immediately prior to and after the actual proclamation. George McTurnan Kahin , a historian on Indonesia, believed that they were omitted from publication in Indonesia either due to Japanese control of media outlets or fear of provoking

6580-547: The representatives at a Youth Congress held in Batavia, the capital, adopted the ideals of one motherland, Indonesia; one nation, the nation of Indonesia; and one language, the Indonesian language . This expression of national unity was a reaction to the older generation, which tended to identify with their region or ethnicity, and subsequently became known as the Youth Pledge . The PNI grew rapidly, causing concern for

6674-581: The resource-rich eastern islands by the Imperial Japanese Navy . As the area controlled by the Navy was the source of essential supplies, including food, to the other areas, rear-admiral Tadashi Maeda was appointed to the liaison office of the naval attaché in Batavia to expedite deliveries and to ensure the maintenance of good relations with the Army. In April 1943, the Japanese established

6768-405: The restructuring of the banking sector, cancellation of government projects, and supporting some banks with their own liquidity. The SBI rate was reduced three times in September to around 20%. As of 24 September, the exchange rate still lingered at Rp. 2,990 per dollar. The government response to the crisis sent mixed messages, with falling interest rates doing nothing to support confidence in

6862-547: The rupiah against major world currencies was just over twice as high as it was in 1995 (prior to the Asian economic crisis, and free fall of the rupiah), i.e. the rupiah was highly overvalued at this point. By March 1983, the managed float had brought only an 11% fall in three and a half years to Rp702. The continued overvaluation of the rupiah meant that Indonesia was beginning to suffer a trade deficit, as well as falling foreign exchange reserves. The government responded by devaluing

6956-505: The rupiah immediately gained almost 10%, to around Rp3,300 per dollar. Soon after, however, confidence began to fall. The IMF response had only been published in summary form from the government and BI, the choice of the 16 banks being closed appeared arbitrary, and the details of the 34 others subject to special measures were not announced. The deposit guarantee was seen as inadequate, and funds were moved from private to state banks, exchanged for dollars, or transferred offshore, as confidence in

7050-446: The rupiah in the past, but these were subsumed into the national rupiah in 1964 and 1971, respectively (see Riau rupiah and West Irian rupiah ). A long-running proposal to redenominate the rupiah has yet to receive formal legislative consideration. Since 2010, Bank Indonesia, as the monetary authority of Indonesia, has repeatedly urged the elimination of the final three zeroes of the currency to facilitate transaction handling, saying

7144-594: The rupiah was controlled by BI against the US$ alone, and indeed since the 1986 devaluation, the currency maintained near-constant purchasing power against the dollar until the 1997 crisis, the steady fall of the rupiah against the dollar essentially representing the difference between Indonesian inflation and US inflation; hence, by June 1997, the rupiah had fallen from its post-evaluation rate of Rp1,664 to Rp2,350, an annualized decline slightly over 3%. The Asian financial crisis of 1997 began in Thailand in May 1997, where

7238-409: The rupiah was devalued 33% to Rp. 625 to US$ 1 on 16 November 1978 (although prices had increased nearly fourfold over the period). The government abandoned the fixed exchange rate, and altered economic policy to a form of a managed float. The exchange rate was published each day. At the point of devaluation (November 1978), the trade-weighted real (local price adjusted) effective exchange rate of

7332-411: The rupiah, and the rupiah continued to be sold, as companies that had been borrowing heavily in dollars had to meet their obligation. By 4 October, the currency had collapsed a further 19%, falling to Rp3,690 per dollar. It had now lost a third of its value, and now a full-blown 'crisis' existed in Indonesia. On 8 October with the rupiah at Rp3,640 per dollar, the government decided to seek the support of

7426-509: The symbol is rendered on computers and typesetting. For a new symbol to be used, its glyphs needs to be added to computer fonts and keyboard mappings already in widespread use, and keyboard layouts need to be altered or shortcuts added to type the new symbol. For example, the European Commission was criticized for not considering how the euro sign would need to be customized to work in different fonts. The original design

7520-474: The two men still refused to make such a proclamation without assurances from the Japanese. Later that morning, Maeda learned that Sukarno and Hatta had disappeared. An Army investigation led to Wikana, who was pressured to return the two men to Jakarta. Following a guarantee of safety and cooperation from Maeda, as well as the use of his house for discussions, Subardjo went to Rengasdengklok and brought Sukarno and Hatta back to Jakarta. They obtained an assurance from

7614-573: The two new currencies and various local variants. This situation ended when the federal government, now in complete control following the Dutch recognition of its independence, initiated currency reforms between 1950 and 1951. The rupiah was declared the sole legal currency, with other currencies being exchanged for rupiah at rates which were often unfavourable to the holders. The rupiah has been subject to high inflation for most of its existence (which as an internationally recognised currency should be dated to 1950). Various attempts have been made to maintain

7708-435: The value of the currency, but all were abandoned. In the period from October 1946 to March 1950, Indonesian currency had no international recognition. Its value was determined on the black market. The exchange rate determined upon the international recognition of Indonesia's independence in 1949 was Rp3.8 to US$ 1. Lembaga Alat-Alat Pembayaran Luar Negeri Publication No. 26 on 11 March 1950 (effective 13 March 1950) established

7802-403: The value of the goods. The official Rp11.4 rate, which massively overvalued the rupiah, was a major incentive to black-market traders, and also contributed to anti-Java feeling, given that those producing raw materials on the large material-rich outer islands were not receiving fair value from their goods due to the exchange rate, diverting funds to the government in Java. The black-market rate at

7896-512: The whole of the East Indies, not just Java. Two days later, Sukarno, Hatta and Rajiman Wediodiningrat were flown by the Japanese to Dalat , near Saigon , to meet with Field Marshall Hisaichi Terauchi , the Japanese commander of the Southern Expeditionary Army Group , who promised independence for the territory of the former Dutch East Indies and formally appointed Sukarno and Hatta as chairman and vice-chairman of

7990-402: Was also exceptionally wide. These two factors have led to most type foundries designing customized versions that match the 'look and feel' of the font to which it is to be added, often with reduced width.  & U+FFE6 ￦ FULLWIDTH WON SIGN Some of these symbols may not display correctly. The Unicode CJK Compatibility block contains several square versions of

8084-433: Was at Rp2,436 to one dollar on 11 July. It fell to Rp2,663 by 14 August and Rp2,955 by 15 August – a 122% fall. Government debt (Bank Indonesia Certificates or SBI) rose from 12% to 30%, and overnight call rates reached 81% (per annum). At this stage, the crisis was a limited one; while the currency had fallen, the extent of the fall did not appear catastrophic. The government announced its response in September, calling for

8178-602: Was devalued slightly, to Rp415 to US$ 1. The exchange rate of 415 rupiah to the US dollar, which had been established in August 1971, was maintained by government intervention in the currency market, buying and selling currency as needed. Despite the fixed exchange rate, the failure of the rice crop in 1972, exacerbated by high world rice prices and underordering by the government rice cartel, along with rising commodity prices, caused inflation to rise above 20% in 1972, peaking at over 40% in 1974. The M1 money supply increased sharply over

8272-551: Was established by younger Marxists including Amir Sjarifuddin , another future prime minister, to campaign for the formation of an Indonesian parliament in cooperation with the Dutch, which was the same aim of the Indonesian Political Federation (GAPI), formed two years later from a merger of almost all the nationalist organizations. However, the outbreak of the Second World War resulted in

8366-412: Was for the proclamation to be read in public before a crowd at the square in the center of Jakarta, now Merdeka Square . However, the Japanese authorities, fearing disorder, deployed soldiers to the area, and as a result, the proclamation was made at Sukarno's house at 56 Jalan Pegangsaan Timur at 10 AM Japan Standard Time , which was in use during the occupation. The ceremony was very simple. Firstly,

8460-654: Was introduced in 1946 by Indonesian nationalists fighting for independence . It replaced the Japanese-issued version of the Netherlands Indies gulden which had been introduced during the Japanese occupation in World War II . In its early years, the rupiah was used in conjunction with other currencies, including a new version of the gulden introduced by the Dutch. The Riau Islands and the Indonesian half of New Guinea ( Irian Barat ) had their own variants of

8554-802: Was made a public holiday by a government decree issued on 18 June 1946. In 1918, the Dutch authorities in the Dutch East Indies established a partly-elected People's Council, the Volksraad , which for the first time gave Indonesian nationalists a voice. Meanwhile, Indonesian students studying in the Netherlands formed the Perhimpoenan Indonesia , or Indonesian Association. Among its leaders were future Indonesian vice-president Mohammad Hatta and future prime minister Sutan Sjahrir . In September 1927, Hatta and other members were arrested for inciting resistance to Dutch authority in

8648-536: Was much more in favor of such participation than the 25th Army or the Navy in other parts of the archipelago. A Central Advisory Council was established, again headed by Sukarno, and more Indonesians were appointed as advisors to the Japanese. In October 1943, the Japanese formed the Defenders of the Homeland (PETA) volunteer army intended to help fight off an allied invasion of the East Indies, and also established

8742-497: Was part-owned by Probosutedjo , the President's half-brother and 8% of PT Bank Industri was owned by the President's second daughter, Siti Hediati Prabowo . The President and his family were opposed to the reforms, with Bambang Trihatmodjo beginning legal action against the government to keep his bank, particularly as directors of the insolvent banks were, if culpable, to be added to a Disgraced person's List, ineligible to work in

8836-409: Was ravaging the economy: exports had dropped 24% in 1959–1965, real GDP growth was below population growth, and the foreign exchange reserves had fallen by over 90%. Inflation in 1965 was 635%. In late 1965, the 'new rupiah' was brought in, at 1 new rupiah to 1,000 old rupiah. The official exchange rate was set initially at Rp0.25 to US$ 1 as of 13 December 1965, a rate that did not represent reality, as

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