Hi all.
Thanks for the input. The hotel came back and confirmed the wording was not correct. The 27m IDR is the total for the stay, not per night. So the penalty is 99 percent of that. Still fairly hefty but much more reasonable and a risk a lot easier to take.
I'm ok with there being a penalty, was just shocked it was 5 times the apparent room amount. Seems the wording was wrong.