Jakarta. The central bank urges that all tourist transactions in Indonesia -- including in Bali -- must use the rupiah as the country tries to save the free-falling currency.

"Rupiah is the legally valid payment within the Indonesian territory," Ronald Dungdung Parluhutan, the deputy head of the Bali chamber for Bank Indonesia, was quoted as saying by the state news agency Antara on Friday.

Mandating rupiah use in domestic transactions also aims to support the now-weakening exchange rate. The law allows exporters to use foreign currencies in international contracts. However, the tourism sector has not yet been included in this exemption. The Indonesian Travel Agents Association (Asita) is now demanding some relaxations.

Putu Winastra, who chairs Asita's Bali branch, is nudging the government into allowing tourism businesses to list tour package prices in foreign currencies, such as the US dollar. However, payments will still be made in rupiah based on the exchange rate at the time of the transaction.

He went on to say how the tourism industry contributes to strengthening the exchange rate by generating foreign exchange. However, the weakening rupiah has presented an obstacle.

This is because tour package prices are generally set in rupiah, while various operational costs have increased with the strengthening US currency. Businesses face a dilemma when they want to list prices in US dollars or other foreign currencies on their official websites. This move could potentially be discovered by law enforcement, according to Putu.

The rupiah weakened to Rp 17,804 per dollar in the spot market on Friday.

Bali aims to attract approximately 6.6 million international travelers throughout 2026.

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