DENPASAR, DEWATA.NEWS – Bali has the second-highest number of money changers in Indonesia after Jakarta, with hundreds of licensed currency exchange services operating across the island, according to data from Bank Indonesia.
Bank Indonesia’s Bali Representative Office reported that 140 licensed money changer companies are headquartered in Bali, supported by 440 branch offices and 21 exchange counters operating in cooperation with hotels. In total, 601 officially licensed money changers currently operate in the province.
Despite the large number of authorized services, authorities warn that illegal currency exchange businesses continue to operate, posing risks to tourists and other customers.
Head of Bank Indonesia’s Bali Representative Office, Erwin Soeriadimadja, said the central bank is increasing vigilance against unauthorized foreign exchange service providers, known locally as KUPVA BB operators, as well as various fraud schemes used by illegal money changers.
“We continue to increase awareness about unlicensed foreign exchange operators and related criminal schemes through education, public outreach, and coordination with various stakeholders, including traditional village authorities, to help maintain Bali’s tourism reputation,” Erwin said on Friday (March 6, 2026).
According to Bank Indonesia, illegal money changers often use deceptive practices that can lead to financial losses for customers. One common tactic involves secretly dropping several banknotes during counting, creating a gap that reduces the final amount handed to the customer.
Other methods include offering exchange rates lower than the agreed rate by claiming that some banknotes are damaged, or charging hidden commission fees or taxes that were not previously disclosed.
“Another tactic is giving a smaller amount with a similar-looking number, for example IDR 5,750,000 being changed to IDR 5,075,000, or failing to provide small change from the transaction,” Erwin explained.
In some cases, operators appear to calculate the transaction using a calculator but apply a different exchange rate from what was initially agreed.
Bank Indonesia said it actively identifies illegal money changer activities either independently or in coordination with local authorities. Under Indonesia’s Financial Sector Development and Strengthening Law (UU P2SK), local governments have the authority to impose sanctions according to regional regulations.
“We also conduct enforcement actions against illegal money changer operators, either independently or in cooperation with related parties such as traditional villages and law enforcement authorities according to their legal authority,” Erwin added.
Traditional village authorities may also impose sanctions based on customary law where applicable.
To help the public identify legitimate currency exchange services, Bank Indonesia has developed the information platform moneychangerbali.com, which lists licensed money changers operating in Bali.
The central bank is also expanding education and outreach programs to encourage the use of licensed foreign exchange providers. These efforts involve tourism associations, the hospitality industry, influencers, and the Bali Foreign Exchange Affiliation (APVA).
The initiative aims to help visitors and residents identify safe and legitimate places to exchange currency while supporting the integrity of Bali’s tourism sector.