Indonesia : In Bintan, No Rupiah, no talk!

[RadX]

Any reason for this? hmmmm

 

 

Hotels in Bintan no longer accepting Singapore dollars

Bintan, Indonesia. Photo: Ye Yumeng

All transactions must be made in local currency, Indonesian hotel operators say

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BY KELLY NG

[email protected]

PUBLISHED: 4:04 AM, SEPTEMBER 18, 2014

SINGAPORE — Several hotels and resorts in the Indonesian island of Bintan have stopped accepting Singapore dollars since the start of this month, citing a government policy that requires all transactions to be made in the Indonesian rupiah.

Five hotel operators, including Banyan Tree Bintan and Nirwana Gardens, told TODAY that they had been told not to accept foreign currencies. Prior to this, Singapore and American dollars were allowed to be used on the island, the operators said.

The Indonesian Embassy in Singapore, however, said the rupiah-only policy is not a new one. An embassy official from its information, social and cultural department referred TODAY to a Bill passed by the Indonesian Parliament in May 2011, which requires all financial transactions within Indonesia to be made in rupiah.

An online report posted on legal firm Allen & Overy’s website said the currency law took effect on June 28 that same year, but does not apply to “transactions related to the state budget, grants given by or to a foreign state, international commercial transactions, bank deposits denominated in foreign currencies and international finance transactions”.

While it is not clear why the law is being enforced only now, a report by the Antara news agency in June this year said the Bank of Indonesia is encouraging people to use the rupiah in their transactions ahead of the establishment of the ASEAN Economic Community next year.

“Bank of Indonesia has asked all entrepreneurs and the Indonesian community to use the rupiah currency in every transaction across the nation, as the bank feared that other countries will be one step ahead of Indonesia,” the central bank’s Deputy Governor Ronald Waas had been quoted as saying.

Some travel agencies in Singapore said they had not been told about the rupiah-only policy. But an Asia Travel spokesperson said the company had been told by local operators in Bintan that travellers must use only the rupiah because of a “new government policy”, although it did not receive any official notification. Several travellers described the currency restrictions as inconvenient, but added that they will not be deterred from visiting Bintan.

Communications specialist Chua Ee Ghim, 27, is concerned about carrying too much cash as the rupiah comes in far smaller denominations than Singapore dollars. “I have to be very careful in keeping my notes and ensure that shopkeepers give me the correct change,” he said.

The policy appears to have not taken effect in Batam yet. Batam is another Indonesian island popular with Singaporeans seeking short getaways.

Three resorts there told TODAY that they still accept payment in Singapore dollars. Batam was in the news last month after Indonesian immigration officials at the Batam Centre began sending ferry passengers back to Singapore for talking too loudly.

 

[Kangadrool]

1. nationalism

2. prevent $$$ laundering and corruption since you need a wheel burrow to cart those notes in bundles

[Ktglfc]

improve in their currency ..

however, they quote almost everything in US$, and then convert to rupiah...

if we pay by credit card, we will ganna double conversion when we pay in sgp dollars when bank convert rupiah to sgp..

 

knew this last month, when travelled to bintan for a short getaway..

[Shull]

Well, it's their country.. so just follow whatever rule set by them, as long as it's within reasonable limit.

 

Only problem is, the biggest denomination note they have is Rp100,000, which is about our $10. To pay for your hotel stay in cash, will take one stack of notes.

[Kangadrool]

if you holiday with a group or family, you need an extra luggage trolley to carry those notes.

 

Well, it's their country.. so just follow whatever rule set by them, as long as it's within reasonable limit.

 

Only problem is, the biggest denomination note they have is Rp100,000, which is about our $10. To pay for your hotel stay in cash, will take one stack of notes.

 

[Shull]

if you holiday with a group or family, you need an extra luggage trolley to carry those notes.

 

 

 

Just use CC lor.. can earn points some more..

 

I once used my CC to pay 5-6k worth of hotel fees for my colleagues, then claim back my company.. credit card miles earn gao gao..

[Tianmo]

Any reason for this? hmmmm

 

 

Hotels in Bintan no longer accepting Singapore dollars

Bintan, Indonesia. Photo: Ye Yumeng

All transactions must be made in local currency, Indonesian hotel operators say

• mail
• print
• View all 2 comments

BY KELLY NG

[email protected]

PUBLISHED: 4:04 AM, SEPTEMBER 18, 2014

SINGAPORE — Several hotels and resorts in the Indonesian island of Bintan have stopped accepting Singapore dollars since the start of this month, citing a government policy that requires all transactions to be made in the Indonesian rupiah.

Five hotel operators, including Banyan Tree Bintan and Nirwana Gardens, told TODAY that they had been told not to accept foreign currencies. Prior to this, Singapore and American dollars were allowed to be used on the island, the operators said.

The Indonesian Embassy in Singapore, however, said the rupiah-only policy is not a new one. An embassy official from its information, social and cultural department referred TODAY to a Bill passed by the Indonesian Parliament in May 2011, which requires all financial transactions within Indonesia to be made in rupiah.

An online report posted on legal firm Allen & Overy’s website said the currency law took effect on June 28 that same year, but does not apply to “transactions related to the state budget, grants given by or to a foreign state, international commercial transactions, bank deposits denominated in foreign currencies and international finance transactions”.

While it is not clear why the law is being enforced only now, a report by the Antara news agency in June this year said the Bank of Indonesia is encouraging people to use the rupiah in their transactions ahead of the establishment of the ASEAN Economic Community next year.

“Bank of Indonesia has asked all entrepreneurs and the Indonesian community to use the rupiah currency in every transaction across the nation, as the bank feared that other countries will be one step ahead of Indonesia,” the central bank’s Deputy Governor Ronald Waas had been quoted as saying.

Some travel agencies in Singapore said they had not been told about the rupiah-only policy. But an Asia Travel spokesperson said the company had been told by local operators in Bintan that travellers must use only the rupiah because of a “new government policy”, although it did not receive any official notification. Several travellers described the currency restrictions as inconvenient, but added that they will not be deterred from visiting Bintan.

Communications specialist Chua Ee Ghim, 27, is concerned about carrying too much cash as the rupiah comes in far smaller denominations than Singapore dollars. “I have to be very careful in keeping my notes and ensure that shopkeepers give me the correct change,” he said.

The policy appears to have not taken effect in Batam yet. Batam is another Indonesian island popular with Singaporeans seeking short getaways.

Three resorts there told TODAY that they still accept payment in Singapore dollars. Batam was in the news last month after Indonesian immigration officials at the Batam Centre began sending ferry passengers back to Singapore for talking too loudly.

 

 

talk about hotel and currency...........but you post picture of charbor and the sea???.............. [laugh]

 

[Jman888]

but more half than half the resort are owned by singaporean right?

[Tianmo]

New BOSS new policy.................likely want to create demand for their own rupiah...........

[Tianmo]

but more half than half the resort are owned by singaporean right?

 

RWS own by genting grp.............we also dont pay in ringgit mah........... [laugh]

[Shull]

Anyway, many other countries i visited in the region also has "local currency only" policy. Although they can quote you in USD, but final payment must still be made in local currency.

 

And paying in local currency makes more sense, since the exchange rate they use to convert to USD are usually quite crappy

[Myxilplix]

Sea got current mah.

[Karoon]

Well, it's their country.. so just follow whatever rule set by them, as long as it's within reasonable limit.

 

Only problem is, the biggest denomination note they have is Rp100,000, which is about our $10. To pay for your hotel stay in cash, will take one stack of notes.

 

no issues maa... just like jakarta, bali and other major cities in indoland

[Ktglfc]

End of story, don't go bintan, go batam :))

Just that, don't talk and don't use phone at customs

[FourZero]

Ya, jst went last month. But as long use CC in hotel can liao unless u go out like Ole Ole there must pay Rupiah (there got money changer too).

[Dleodleo]

use credit card more exp right?

 

I think change ruppiah is cheaper.

[Shibadog]

use credit card more exp right?

 

I think change ruppiah is cheaper.

 

 

yup n risk card cloning too.

 

I usually pay cash (pun intended) in Indo, except at places where I can see the card being swiped in my presence. Note this is even when I had an indo credit card. My then-colleague used his Malaysian credit card freely in indo... within a week, his credit card company called him to ask if he was buying jewellery....

[Dleodleo]

 

 

yup n risk card cloning too.

 

I usually pay cash (pun intended) in Indo, except at places where I can see the card being swiped in my presence. Note this is even when I had an indo credit card. My then-colleague used his Malaysian credit card freely in indo... within a week, his credit card company called him to ask if he was buying jewellery....

 

Aiyo!

 

Thanks for sharing.