Instruct: Given a question, retrieve relevant documents that answer the question.
Query: What currency do they spend in Indonesia?
The rupiah (Rp) is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. The name "Rupiah" is derived from the Indian word rupiya (रुपीया), ultimately from Sanskrit rupyakam (रूप्यकम्; silver). Informally, Indonesians also use the word "perak" ("silver" in Indonesian) in referring to rupiah. The rupiah is subdivided into 100 sen, although inflation has rendered all coins and banknotes denominated in sen obsolete.
In 1961, Yorkshire housewife Viv Nicholson won £152,319 in the football pools. When a reporter asked her what she planned to do with her new fortune, she replied, "I'm going to spend, spend, spend!," which is exactly what she did. Her rags-to-riches-to-rags-again story takes her through five husbands, expensive sports cars, fur coats, and jewelry, a battle with alcohol, and bankruptcy as, unable to cope with her new-found wealth and fame, she rapidly spirals downward.
In 2012, Indonesia's real GDP growth reached 6%, then it steadily decreased below 5% until 2015. After SBY was succeeded by Joko Widodo, the government took measures to ease regulations for foreign direct investments to stimulate the economy. Indonesia managed to increased its GDP growth slightly above 5% in 2016–2017. However, the government is currently still facing problems such as weakening currency, decreasing exports and stagnating consumer spending. The current unemployment rate for 2017 is at 5.5%.
Double-spending is a potential flaw in a digital cash scheme in which the same single digital token can be spent more than once. Unlike physical cash, a digital token consists of a digital file that can be duplicated or falsified. As with counterfeit money, such double-spending leads to inflation by creating a new amount of copied currency that did not previously exist. This devalues the currency relative to other monetary units or goods and diminishes user trust as well as the circulation and retention of the currency. Fundamental cryptographic techniques to prevent double-spending, while preserving anonymity in a transaction, are blind signatures and, particularly in offline systems, secret splitting.
Consumer sentiment is the general attitude of toward the economy and the health of the fiscal markets, and they are a strong constituent of consumer spending. Sentiments have a powerful ability to cause fluctuations in the economy, because if the attitude of the consumer regarding the state of the economy is bad, then they will be reluctant to spend. Therefore, sentiments prove to be a powerful predictor of the economy, because when people have faith in the economy or in what they believe will soon occur, they will spend and invest in confidence. However sentiments do not always affect the spending habits of some people as much as they do for others. For example, some households set their spending strictly off of their income, so that their income closely equals, or nearly equals their consumption (including savings). Others rely on their sentiments to dictate how they spend their income and such.
Bill Maurer has examined how Islamic bankers who are seeking to avoid religiously proscribed interest payments have remade money and finance in Indonesia. His book, "Mutual Life, Limited", compares these Islamic attempts to remake the basis of money to local currency systems in the United States, such as "Ithaca Hours." In doing so, he questions what it is that gives money its value. This same question of what gives money its value is also addressed in David Graeber's book "Towards an Anthropological Theory of Value: The false coin of our own dreams".
The cost of currency hedges—and thus "certainty what importers and exporters' money is worth"—has nothing to do with volatility whatsoever, as this cost is exclusively determined by the interest rate differental between two currencies. Nevertheless, as Tobin said, "If ... [currency] is suddenly withdrawn, countries have to drastically increase interest rates for their currency to still be attractive."[4][5]
A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they do not need to exchange their currency to do so.
In economics, a local currency is a currency that can be spent in a particular geographical locality at participating organisations. A regional currency is a form of local currency encompassing a larger geographical area. A local currency acts as a complementary currency to a national currency, rather than replacing it, and aims to encourage spending within a local community, especially with locally owned businesses. The currency may not be backed by a national government or be legal tender in the UK. About 300 complementary currencies, including local currencies, are listed in the Complementary Currency Resource Center worldwide database.
Bank Negara Indonesia was established on 5 July 1946. It was prepared to be the Central Bank of Indonesia with the task of issuing and handling Indonesian currency. A few months after its establishment, Bank Negara Indonesia officially distributed the first official currency of Indonesia - ORI or Oeang Republik Indonesia.
Indonesia law No. 7 of 2011 about currency in Indonesia only allows Rupiah as a medium of exchange in Indonesia. The law effectively prohibits the use of commodities such as cryptocurrencies and gold as currencies. Bank Indonesia has emphasized the prohibition on using cryptocurrency assets as a medium of exchange in Indonesia..
Hyperinflation in Indonesia (which due to the separate monetary policy and currency, did not afflict Irian, although inflation was certainly still present) had necessitated a 1000 to 1 devaluation of the national currency in December 1965. It was the intention of the Presidential decree of 13 December 1965 that the 'rupiah baru' (new rupiah) become the unified national currency of all of Indonesia, exchangeable for the Irian Barat rupiah at par. However, a subsequent decree of 15 September 1966 restored the validity of the Irian money, recalling the Indonesian rupiah from Indonesia.
It has been suggested that the cent should be eliminated as a unit of currency for several reasons including that many Americans do not actually spend them, but rather only receive them in change at stores and proceed to return them to a bank for higher denomination currencies, or cash them in at coin counting kiosks. Most modern vending machines do not accept pennies, further diminishing their utility, and the production cost (figured in U.S. Dollars) now exceeds the face value of the coin, caused by increasing inflation. In 2001 and 2006, for example, United States Representative Jim Kolbe (R) of Arizona introduced bills which would have stopped production of pennies (in 2001, the Legal Tender Modernization Act, and in 2006, the Currency Overhaul for an Industrious Nation [COIN] Act).
Maria participated in Miss Indonesia 2014 representing West Sulawesi. She was crowned Miss Indonesia 2014 or "Miss World Indonesia 2014" by the outgoing titleholder Vania Larissa on February 17, 2014. She managed to beat 33 other contestants from different provinces in Indonesia. During the contest, the head judge Liliana Tanoesoedibjo asked what Maria would do if she won, she said:
Whatever the cause, hyperinflation involves both the supply and velocity of money. Which comes first is a matter of debate, and there may be no universal story that applies to all cases. But once the hyperinflation is established, the pattern of increasing the money stock, by whichever agencies are allowed to do so, is universal. Because this practice increases the supply of currency without any matching increase in demand for it, the price of the currency, that is the exchange rate, naturally falls relative to other currencies. Inflation becomes hyperinflation when the increase in money supply turns specific areas of pricing power into a general frenzy of spending quickly before money becomes worthless. The purchasing power of the currency drops so rapidly that holding cash for even a day is an unacceptable loss of purchasing power. As a result, no one holds currency, which increases the velocity of money, and worsens the crisis.
During colonial times, the currency used in what is now Indonesia was the Netherlands Indies gulden.[7] The country was invaded in 1942 by Japan, which began printing its own version of the gulden, which remained in use until March 1946.[8][9] 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.[10][9] Between 1946 and 1950 a large number of currencies circulated in Indonesia, with the Japanese gulden still remaining prevalent alongside the two new currencies and various local variants.[9] 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.[9] The rupiah was declared the sole legal currency, with other currencies being exchanged for rupiah at rates which were often unfavourable to the holders.[9]
In March 2015, Morgan Stanley stated that India and Indonesia had escaped from the 'fragile five' (the five major emerging markets with the most fragile currencies) by instituting economic reforms. Previously, in August 2013, Morgan Stanley rated India and Indonesia, together with Brazil, Turkey and South Africa, as the 'fragile five' due to their vulnerable currencies. But since then, India and Indonesia have reformed their economies, completing 85% and 65% of the necessary adjustments respectively, while Brazil had only achieved 15%, Turkey only 10%, and South Africa even less.
Indonesia regained its investment grade rating from Fitch Rating in late 2011, and from Moody's Rating in early 2012, after losing it in the 1997 crisis, during which Indonesia spent more than Rp. 450 trillion ($50 billion) to bail out lenders from banks. Fitch raised Indonesia's long-term and local currency debt rating to BBB- from BB+ with both ratings is stable. Fitch also predicted that economy will grow at least 6.0% on average per year through 2013, despite a less conducive global economic climate. Moody's raised Indonesia's foreign and local currency bond ratings to Baa3 from Ba1 with a stable outlook. On May 2017 S&P Global raised Indonesia's investment grade from BB+ to BBB- with a stable outlook, due to the economy experiencing rebound in exports and strong consumer spending during the early 2017.
The museum is designed to introduce the public Bank Indonesia's role on the Indonesian history, such as monetary policies and payment system that changes over time. The museum also provide visitors with audio and visual experience on the history of currencies and trade in Indonesia from pre-colonial era to the present state. It include eras such as the early spice-trading history, Dutch East India Company spice monopoly in the Indonesian archipelago, banking system of the Dutch East Indies, currencies under Japanese occupation and ended on the economic crisis of 1997.
Since the intention of DKP is to allocate scarce resources amongst guild members, they can be understood in the context of virtual capital. Players "earn" and "spend" DKP, bidding in a system of auctions for an item which holds some value for them. DKP are referred to as "currency" a guild leader pays his "employees". Despite these analogies, DKP remain a kind of "private money system", allowing guilds to mete out these otherwise unachievable items in return for participation and discipline. The points cannot be traded or redeemed outside the guild and are not actually part of the game itself; they are tracked on external websites. In contrast, the virtual currencies created by game developers are part of the game software and may be traded between players without respect to any social affiliation. Just as DKP is valueless outside the guild, parlaying of economic capital for DKP (paying real world currency in exchange for DKP) is almost unheard of. Because guilds mete out DKP in return for participation in events the functional result is that DKP serve less as currency or material capital and more as what Torill Mortensen refers to as a "social stabilizer"; players who attend raids more frequently or play by the rules reap the rewards while more "casual" gamers do not. This provides an incentive for players to remain in the social system (the guild) longer than they might otherwise.
In sovereign financial systems, banks can create money but these "horizontal" transactions do not increase net financial assets as assets are offset by liabilities. "The balance sheet of the government does not include any domestic monetary instrument on its asset side; it owns no money. All monetary instruments issued by the government are on its liability side and are created and destroyed with spending and taxing/bond offerings, respectively." In addition to deficit spending, valuation effects (e.g. growth in stock price) can increase net financial assets. In MMT, "vertical" money (see below) enters circulation through government spending. Taxation and its legal tender enable power to discharge debt and establish the fiat money as currency, giving it value by creating demand for it in the form of a private tax obligation that must be met. In addition, fines, fees and licenses create demand for the currency. This can be a currency issued by the domestic government, or a foreign currency. An ongoing tax obligation, in concert with private confidence and acceptance of the currency, maintains its value. Because the government can issue its own currency at will, MMT maintains that the level of taxation relative to government spending (the government's deficit spending or budget surplus) is in reality a policy tool that regulates inflation and unemployment, and not a means of funding the government's activities by itself.
Analyses has been published by currency strategists at RBS, scoring countries on their potential to undertake intervention, measuring their relative intention to weaken their currency and their capacity to do so. Ratings are based on the openness of a country's economy, export growth and real effective exchange rate (REER) valuation, as well as the scope a country has to weaken its currency without damaging its economy. , Indonesia, Thailand, Malaysia, Chile and Sweden are the most willing and able to intervene, while the UK and New Zealand are among the least.
Complementary currencies are often designed intentionally to address specific issues, for example to increase financial stability. Most complementary currencies have multiple purposes and/or are intended to address multiple issues. They can be useful for communities that do not have access to financial capital, and for adjusting peoples' spending behavior. The 2006 Annual Report of the Worldwide Database of Complementary Currency Systems presented a survey of 150 complementary currency systems in which 94 respondents said that "all reasons" were selected, among cooperation, micro/small/medium enterprise development, activating the local market, reducing the need for national currency, and community development.
Law Number XLVIII: The more time you spend talking about what you have been doing, the less time you have to spend doing what you have been talking about. Eventually, you spend more and more time talking about less and less until finally you spend all your time talking about nothing.
South Korea and Indonesia signed a won-rupiah currency swap deal worth US$10 billion in October, 2013. The two nations can exchange up to 10.7 trillion won or 115 trillion rupiah for three years. The three-year currency swap could be renewed if both sides agree at the time of expiration. It is anticipated to promote bilateral trade and strengthen financial cooperation for the economic development of the two countries. The arrangement also ensures the settlement of trade in local currency between the two countries even in times of financial stress to support regional financial stability. As of 2013, South Korea imported goods worth $13.2 billion from Indonesia, while its exports reached $11.6 billion. In August 2018, Qatar and Turkey's central banks signed a currency swap agreement to provide liquidity and support for financial stability. 