As Bali continues to attract millions of international visitors each year, a debate is emerging over how tourism businesses should price their services. While many tourism operators argue that they effectively generate foreign exchange earnings similar to exporters, Bank Indonesia maintains that transactions in the tourism sector must still be conducted in rupiah.
The Bali Representative Office of Bank Indonesia recently reaffirmed that tourism-related transactions are subject to Indonesia’s currency regulations because the sector has not been included among those exempted from the obligation to use rupiah.
“Rupiah is the legal means of payment within the territory of the Republic of Indonesia,” said Ronald Dungdung Parluhutan, Deputy Head of the Bank Indonesia Representative Office in Bali, when contacted in Denpasar on Friday.
According to Ronald, the policy serves a broader purpose beyond regulatory compliance. Requiring the use of rupiah in domestic transactions helps support exchange rate stability and strengthens the sovereignty of the national currency throughout Indonesia.
Current rules provide certain exemptions for international trade activities. Under Bank Indonesia Regulation (PBI) No. 17/3/2015, international trade transactions are not required to use rupiah. The regulation allows exporters to quote prices and conduct contracts using foreign currencies when dealing with overseas buyers.
However, those exemptions do not currently apply to tourism businesses.
The situation has prompted calls from industry players for greater flexibility. Chairman of the Association of Indonesian Tours and Travel Agencies (ASITA) Bali, Putu Winastra, hopes authorities will allow tourism operators to display tour package prices in foreign currencies, including the U.S. dollar.
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Under his proposal, payments would still be settled in rupiah. The amount paid would simply be converted using the prevailing exchange rate at the time of the transaction.
Winastra believes the tourism sector deserves special consideration because it generates foreign exchange earnings in a way that resembles exports. In his view, tourism businesses are effectively “exporting” tourism services to international visitors who spend money in Indonesia.
The issue has become more pressing as currency fluctuations continue to affect business operations. According to Winastra, when the U.S. dollar strengthens while tourism packages remain priced in rupiah, companies face growing financial pressure. Operational costs rise because many goods and services used within the tourism industry become more expensive.
At the same time, tourism businesses find themselves in a difficult position. Displaying prices in U.S. dollars or other foreign currencies on official websites could potentially attract scrutiny from law enforcement agencies. In some cases, such practices could even become legal issues due to existing currency regulations.
For Bali, the discussion carries particular importance because of the island’s role in generating foreign exchange for Indonesia. As one of the world’s most popular tourism destinations, Bali attracts large numbers of international visitors whose spending contributes foreign currency revenues to the national economy.
Industry representatives argue that this contribution mirrors the benefits generated by traditional exports. Increasing exports has long been recognized as one method of strengthening the rupiah, and tourism revenues provide a similar inflow of foreign exchange.
The debate is unfolding against the backdrop of recent pressure on Indonesia’s currency. Over the past several weeks, the rupiah weakened considerably and even moved beyond the psychological level of Rp18,000 against the U.S. dollar.
In response, Bank Indonesia implemented a series of monetary tightening measures. One of the most significant steps involved raising the benchmark interest rate, known as the BI Rate.
In May 2026, the central bank increased the BI Rate by 50 basis points, bringing it to 5.25%. The rate was raised again by 25 basis points to 5.50% on Tuesday, June 9. Another increase followed, pushing the benchmark rate to 5.75%.
Following those measures, the rupiah showed signs of recovery and strengthened, moving away from the Rp18,000 per U.S. dollar threshold.
As discussions continue between regulators and tourism industry players, the balance between protecting the rupiah and addressing the operational realities of tourism businesses remains a key issue. For now, Bank Indonesia’s position remains clear: tourism transactions conducted within Indonesia must continue to use the country’s official currency.
