What is IDR and What Does It Stand for
The word IDR is becoming familiar because more people are using this term to describe the Rupiah or Indonesian currency. The Indonesian rupiah currency code is often abbreviated or referred to as IDR.
IDR is a nominal number that states the amount of money or the price of a particular product. IDR is an abbreviation of Indonesian Rupiah. As we know, Rupiah is the Indonesian currency that is used today.
Get to Know IDR and Its History
This IDR is often written with the symbol or abbreviation “Rp”, which is fully controlled and is the responsibility of Bank Indonesia. For the first time, Rupiah was circulated in Indonesia in 1946.
Other currencies circulated before or at the same time as the Rupiah were the Japanese version and the Dutch version of the gulden. Between 1950 and 1951, finally IDR became the only currency in Indonesia.
It was only in 1950 that the Rupiah was recognized as the currency of the Republic of Indonesia after the Dutch recognized Indonesia’s independence. Then in the 1965s, paper notes were introduced in Indonesia.
The Rupiah has also experienced a steady decline under the proper exchange rate structure and is always well managed.
IDR Fluctuation in Indonesia
IDR is also part of nat geo Indonesia, namely matters relating to the Republic of Indonesia. The exchange rate in Indonesia has always changed since the issuance of the Rupiah as a currency.
Between 1949 and 1952, the rupiah exchange rate was approximately 3.8 per USD. However, the state imposed different tariffs on its imports and exports in 1950, it was eventually cancelled and a rate of 3.8 per USD was introduced again.
Meanwhile, the official exchange rate is still at 11.4. On the black market, the currency fell to 31 in 1956, while in 1958, it fell to 90 per USD. This exchange rate is usually given the symbol IDR or USD, which will make it easier for citizens of the country.
Symbol Difference between IDR and RP
The use of the term IDR in determining the amount or price of an item has referred to ISO 4217, an international standard set by the International Organization for Standardization.
So, whether it is written as IDR or RP, both have the same meaning. RP is the standard word in formal writing according to EYD (Indonesian Spelling System), while IDR is used to facilitate international transactions.
Hundreds of foreign currencies are also often involved in international transactions. The term IDR is used to facilitate this if the calculation is being done internationally. However, for domestic use, only use RP.
After knowing the difference between the two, now you can use the term according to your needs. For international transactions, of course, use the term IDR, not RP.