Foreign exchange in Bali
 

Hello,
I wonder if anyone can help me please? My wife and I are going to Bali for our 25th anniversary at the end of this month. This will be our first time in Bali, or in Indonesia, for that matter. I was wondering if anyone could point me to information about the best way to get local currency in Bali (traveler's checks, cash, ATM, etc)?

Many thanks for any help you can offer.

Frank.

The exchange rate offered varies daily and in Nov 2010 I found approx. 6% variation between the good sources (bank, ATM, licensed money changers) and up to 20% worse at the bad sources (hotels, restaurants, etc.). So it does pay to shop around. ATMs are pretty good, if your bank doesn't impose an overseas ATM fee (some do, some don't). Often within 3% of the best exchange rate. Banks (at a live teller) were typically 4-5% worse than the best rates. The licensed money changers vary amongst themselves by several percent, even ones on the same block, and often offer better than the interbank rate; so there is some arbitrage possibility (presumably it is Indonesians skirting foreign exchange monitoring :) ). Finally, for large transactions (e.g. villa rental) they prefer USD (new Franklins). The absolute worst choice is traveler's checks, those often got 10% worse exchange rate unless you cashed them at the issuer (and even then 5% worse); really a terrible choice, better off using ATM card instead! ATMs are everywhere (the airport ones are a bit more expensive, but maybe worth the convenience).

Please follow this in the Asia forum.

l'etoile
sr. moderator

Also, you'll see little exchange booths by the roadside all over the place. They can be handy if you run a little short and need to change a bit, but count your money carefully, and beware of any places where the posted rates seem too good to be true: they are. If you're lucky, they'll just raise the rate through some bogus commissions etc; if not, you'll get the posted rate, only minus a few bills spirited away through sleight of hand.

Thanks!
 

Hello,
Just wanted to say thank you all for your help. Certainly seems that $100 bills and local money changers are the way to go.

Frank.

Best bet is ATM. There are a couple next to the first luggage carousel you see after Immigration at DPS.

Once you surrender your custom form and turn left, you will see an endless window of foreign exchange agents, all offering same (bad) rate.

If you must change at local agencies, please make sure you bring crisp, unfolded (practically brand new) USD notes with no tear, stain or marks, not issued in 1996, and no 'H' or 'K' series. Supposedly this is the rules from Indonesian banks.

Enjoy Bali!

These are all to be avoided! Even the airport ATMs have a worse rate than elsewhere (I suppose airport rent must be paid). The roadside money changers everywhere in Bali offer at least 10% better rate than at the airport, and I found them to be honest and reliable even when it looks very ramshackle. There is little reason or benefit to use banks and more formal places to change money, and I had no problem changing a wide variety of bills in varying condition; they know how to test for counterfeit!

I just want to add that low denomination USD notes, especially US$1, can get a very unfavourable exchange rate at some money changers. Check the rate before you hand over your USD, it's not uncommon for money changers to have two different rates, one for low denomination notes, one for higher denomination notes.

Best way is to always use a CC (w/o a foreign transaction fee) wherever it's accepted. A google search can help you find a good one. Chase's hyatt card is one example.


For withdrawing cash:
If you have a paypal account, you may want to look into getting their debit/ATM card:

https://personal.paypal.com/cgi-bin/..._us/debit_card

From the user agreement: https://cms.paypal.com/cgi-bin/marke...DebitCard_full

I spoke to a CSR about this and it's actually $1 plus 1% for a withdrawal. Limit is $400, so it would cost $5 to withdraw $400. The card uses the cirrus/mastercard network. I only use this card to withdraw cash from a foreign ATM; I don't use it for purchases or anything so I can't attest to the fees associated with that.

I have my paypal acct linked to my checking and can just add/monitor my funds from there. ^

How are the exchange rates determined at ATMs? I know it can fluctuate literally by the second, but I didn't know ATMs in different locations (of the same bank, at least) can offer different exchange rates.

LAX

It doesn't in the US (though fees can vary by location) ... but this is Indonesia which has a very different banking system and no free foreign exchange market. I haven't done a study on it, just what I observed as a tourist who used several ATMs and dealers; the worst rate was at the ATM at the airport. But the "shady" street traders are the best rates, so take cash if you want to save money, use ATM or credit cards for convenience.

Had few experience flying to Indonesia, the better way is bring USD and change Rupiah at Airport. The conversion rate is much more cheaper compare to local exchange rate.

Actually, as stated earlier in this thread, the airport is one of the worst possible places to change money since the rates are quite bad.