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The local currency of Indonesia is Rupiah (Rp)
Indonesians also use the word “perak” (‘silver’ in Indonesian) in referring to rupiah. 1Rp = 100 sen. Bills come in denominations of Rp 100,500,1000,5000,10,000,20,000,50,000 and 100,000. Coins come in denominations of Rp 5,10,25,50 and 100.
Foreign currencies, either banknotes or travellers cheques, are easily exchanged at banks and money exchange in major tourist destinations. Credit cards are accepted at most hotels and restaurants in main cities. It is advisable to carry sufficient amounts of Rupiah when traveling to smaller towns or outer provinces.
Bring USD is a good Idea
It is good to bring brand new US Dollar (new series H) to use in Indonesia. Please note that it is should be in perfect condition with no damage. Otherwise , it is hard to find the exchange money shop accept it. The exchange currency shop will not accept the US bank print before 1996 and series A,B,C,and D. You can find the shop that did not charge the fee for exchange money and be sure to count you money before leave them.