Expatiate Housing and the Currency of Exchange: Jakarta, Indonesia

[fa icon="calendar'] Nov 05, 2015 @ 02:43 PM / by Meleah Paull

 

Beginning on July 1, 2015, all transactions within Indonesia must be paid in Indonesian rupiah. This ban on foreign currencies has disrupted the common practice of quoting prices and paying rent for expatriate executive housing in U.S. dollars. Realtors I spoke with in August, however, said that there has been little substantive change in negotiation practices. Rents are still discussed in U.S. dollar terms and then converted to and paid in rupiah at the time of agreement and signing. Although rents are stated as a monthly price, the full term of any expatriate rental in Jakarta must be paid in advance, so the conversion to rupiah is calculated just once rather than many times throughout the lease.

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