Dollars in a Bali contract: why the deal amount must be in rupiah
AB
Andrei Balinsky
Founder of Balinsky
Villa prices in Bali are almost always quoted in dollars. But the law requires the contract amount and the payment itself inside Indonesia to be in rupiah. This is not the notary's whim.
What the law says
- Currency Law No. 7/2011, Art. 21: the rupiah is mandatory for all payments and settlements in Indonesia.
- The exceptions are narrow: international trade (exports and imports), the state budget, grants and loans from abroad, and banks' currency operations.
- The fact that one of the parties is a foreigner is not an exception. Renting a villa, a leasehold and buying from a developer in Bali are domestic deals.
What the penalties are
- Paying in cash in a currency other than rupiah, or refusing to accept rupiah: up to 1 year in prison or a fine of up to 200 million rupiah (Art. 33).
- Non-cash payment in a currency other than rupiah: two warnings from Bank Indonesia, then a fine of 1% of the amount, but no more than 1 billion rupiah.
- An amount in dollars is easier to challenge if the matter ends up in a dispute.
Prices and advertising
An Indonesian company must state prices in rupiah only. It also may not show a price in rupiah and in dollars at the same time. The rule covers contracts, invoices, price lists, rent, agency commissions and websites (Bank Indonesia circular No. 17/11/DKSP of 2015). A breach leads to a warning, and then the Bank may recommend revoking the licence.
How it is done in practice
- The contract states the amount in rupiah. If the price was agreed in dollars, a separate clause says at what exchange rate and on what date it is converted.
- Money from abroad arrives in an Indonesian account and is credited in rupiah.
Two more bans
- You cannot pay for goods and services in Indonesia with cryptocurrency: it is not legal tender. Owning cryptocurrency as an asset is allowed.
- A seller may not charge an extra 3% for card payments. Bank Indonesia prohibits such surcharges.
Editorial note
Balinsky editorial team · 12 October 2026. The text has been checked against Indonesian laws in force on this date.
Update: one popular review said that with a foreigner the amount can be set in any currency. This is wrong: the exception applies only to international trade, not to a party's citizenship.
Materials the article is based on: https://t.me/BaliLawyer/4, https://t.me/BaliLawyer/178, https://t.me/BaliLawyer/30, https://t.me/BaliLawyer/38
Sources
- Currency Law No. 7/2011, Art. 21: https://pasal.id/peraturan/uu/uu-no-7-tahun-2011/pasal-21
- Same law, Art. 33 (penalty): https://pasal.id/peraturan/uu/uu-no-7-tahun-2011/pasal-33
- Hukumonline analysis of rent in dollars: https://www.hukumonline.com/klinik/a/sewa-apartemen-bertarif-dolar-haruskah-bayar-pakai-rupiah-lt4e1ff0fbf2c45
- Bank Indonesia: https://www.bi.go.id