Illegal Money-Changers Raided: Legian, Bali
Changing money in Bali has always been a dicey thing for a lot of tourists and especially those with little knowledge who travel to the island for the first time.
At one time I used to use travellers cheques but got bored with the hassle of having to always produce my passport. Most of the time, I carry large denomination notes and find that much easier and less of a hassle. I leave all that money changing to Candika considering that is her field of expertise.
There are sharks out there on the streets in Kuta and Legian who will charge you commission to change money and that in itself is a rip off. The exchange rate might look good on the board out front of the shop but once you have paid the commission then you are getting far less than advertised.
These leeches are a constant scourge and tarnish the good reputation of the Balinese people. I was pleased to read in the Bali Discovery that recently these places were raided.
Responding to numerous complaints from the public regarding fraudulent practices by Bali money-changers a team of village and local community associations conducted surprise raids on three main streets in Legian on Friday, July 8, 2006. Those raids - affecting Jalan Melasti, Jalan Padma and Jalan Legian - netted 55 money changers operating without the required permits.
According to data provided by the Association of Foreign Exchange Operators only 29 exchange counters are formally registered as foreign exchange operators in Legian, a number far less than the 55 illegal operators discovered in the Friday raids.
Of the 55 illegal money changers uncovered in the raids most were found to be operating without any of the required permits with the remainder found to be operating with expired licenses.
Operating licenses for money changers are only issued by Bank Indonesia. Among the requirements imposed by Bank Indonesia for a legal money changer operation are:
Possession of local operating permit (SITU/HO).
A standardized sign to mark the location of an authorized money changer.
A safe for the storage of funds.
A detection device for discovering counterfeit funds.
A calculator.
Forms for recording exchange transactions.
Well presented staff to work in the money changer.
A minimum office size of 2 x 2 meters for the branch office of a money changer.
By Barrie | Permalink
Related Posts
- Banks & Money Changers
- Banks & Money Changers
- Indonesian rupiah: Best performer in region
- Dealing with money here in Bali
- Money in Bali
Subscribe
|
Print
|
Share              |
Comments
Save yourselves the hassle and carry at least 2 ATM cards with you, and just take the cash you need from the machines. Yes, there will be a service charge, but I bet it will be as reasonable as the time spent running around various banks and money changers trying to get one more rupiah per thousand in exchange rates, and making sure you’re not cheated at the same time.
I think most readers of this blog can get away with carrying an extra US$100-500 or so in emergency cash just in case the cards don’t work.
For anything else, charge it!
Hi Chris,
Yeah, a good calculator always goes down well. I reckon they have pre-programmed their calculators!
Hi Rich,
It is cool carrying cards and the extra cash as you suggested but when you travel outside of Bali you will have to look at another source for your funds as far as safety is concerned. Maybe open an account in one of the Balinese banks. BCA is good.
Also the chicks are more honest than the fellas. Ones with groups of guys hanging around are to be avoided at all costs.
Barrie, I’m strictly a Bali going guy. Love that little island. Yep, BCA works for me too.
They forgot the most important requirement. The ability to actually count money, with or without an ‘accurate’ calculator!