The Indonesian Rupiah is known as a more volatile currency, and that understandably raises questions for investors. But how big is the currency risk of a Bali investment really? The answer is reassuring.
Most transactions run in dollars or euros
International Bali transactions are almost always settled in US dollars or euros. Both the purchase price and a large part of the rental income from international rentals are expressed in hard currency. As a result, as an investor you notice much less of fluctuations in the Rupiah in practice than you would expect.
Tourism as a natural buffer
Rental demand in Bali comes from dozens of countries, with payments in various currencies. That spread works as a natural buffer: when one source market or currency temporarily drops out, others absorb it. No single market accounts for more than a quarter of visitors.
How to limit the risk further
A long horizon helps: over seven to ten years, short-term fluctuations even out. In addition, a professional operator ensures pricing in hard currency and healthy occupancy. We report transparently each quarter, so you can always track the effect of currency on your net return.
