Changing money in Bali has always been a dicey thing for a lot of tourists and beware if you travel to Bali for the first time.

Just in Legian and Kuta, you can see plenty of “Money Changers” along the streets and the exchange rates on the boards out front of the footpaths or windows outside shops always look good. However, I’m quite sure that many of them are “illegal money changers”. They are actually sellers that selling shoes, sunglasses and paintings etc. but also “licenced” money changers. I’m not sure how many of them really obtained the licence or permit as the money changers but I met three “money changers”, all of them want to cheat me.

I managed to avoid to be cheated by the first two “money changers” but I was cheated by the third “money changer” although I was very careful and alert when dealing with them.

Here are the tricks of illegal money changers that I met and experienced on the same day and same street in Legian, Bali:

I Met First Illegal Money Changer
1. Their calculator is modified and the figure appears on the display of their calculator is less than the actual amount.

Eg. RM1=Rp2,990; when you change RM200, you should get RM200 x Rp2,990 = Rp598,000 but the result shows on their calculator is Rp498,000. Even you press their calculator, it will show this result also. This was happened to me but after I showed them the actual amount with the calculator on my handpone, they ended up refused to exchange the money for me.

I Met Second Illegal Money Changer
2. They will pay you small notes.

Let say you suppose to get Rp1,000,000; instead of paying you 10 pieces of Rp100,000 notes, they will pay you 50 pieces Rp20,000 notes. After I agreed with the exchange rate, they hold and counted the notes together with me. When I confirmed the amount was correct and said OK, they passed the Rupiah notes to me. Luckily I recounted, I found out some notes were missing, the amount was not tally. I asked them why the amount was not tally, they immediately returned my money and refused to deal with me. In fact, they put all the money together in one bundle and secretly drop some money behind the counter before they handed over it to you.

I Met Third Illegal Money Changer
3. They try to confuse you by the number of zero in the notes.

As I said earlier, they will pay you the small notes. I was very alert for the third time and I “accidentally” realised I was cheated after few hours later. I supposed to get Rp480,000 and the calculator shows this figure too. I requested bigger notes like Rp50,000 or Rp100,000, the man said he has no big notes, the biggest note is Rp20,000. I was very careful because I had a feeling that the man was trying to cheat me. Anyway, I accepted the small notes; he gave me 20 pieces of Rp20,000 notes and 8 pieces of Rp1,000 notes. I counted twice and couldn’t find out any trick. I asked for a receipt but he said he never provided receipt. Few hours later, when I was enjoying reflexology and thinking to pay them tips, I just noticed that I have so many small notes in my wallet. Then I realised that I was mistaken Rp1,000 as Rp10,000. I supposed to get Rp80,000 but I got Rp8,000 only. I was cheated Rp72,000 by the third illegal money changer. I was thinking to lodge a police report but I didn’t because I have no receipt as the proof, and I was worried about my personal safety in Bali also because we just arrived.

The potentials of illegal money changers:
1. The illegal money changers normally offer higher exchange rates.
2. The illegal money changers are sellers.
3. The illegal money changers provide Rp20,000 notes only.
4. The illegal money changers never provide receipt.

For your info., 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.

• Form/receipt for recording exchange transactions including the exchanged amount and its rate.

• 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.

My advice to you in order to avoid being cheated by Illegal Money Changers in Bali:

Whenever the money changer says he has no Rp.100,000 notes and offers you Rp20,000 notes, refuse the deal and don’t take the risk, 99.99% of them are planning something hanky panky. I don’t want you to be the next victim.