The document summarizes the tuition fees conversion from USD to IDR at an international school in Indonesia following a new regulation requiring all fees and prices be quoted in Indonesian Rupiah. It explains that tuition will be fixed in IDR annually, with 50% based on the previous year's IDR fees adjusted for inflation and the other 50% based on the previous year's USD fees converted to IDR using the school's annual budget exchange rate. For the 2016/17 academic year, the exchange rate used was 14,000 IDR to 1 USD. The resulting tuition was then adjusted for any tuition increases or changes, though tuition did not increase that year for the third year in a row.

1. Understanding the tuition fees conversion from USD to IDR
On 1 July 2015, Bank Indonesia’s BI Regulation No. 17/3/PBI/2015 regarding the Mandatory Use of
the Rupiah in Indonesia came into effect. This regulation requires that all fees and prices in
Indonesia are quoted in IDR and all payments within Indonesia are made in IDR.
We have carefully considered possible ways to implement this regulation in the context of a
School that has a majority of international students and teachers, for many of whom IDR is not the
currency of reference. It was also important to consider that about half the School’s costs are IDR
based, with the other half USD based. This is mainly driven by how our international teacher
compensations are structured for them to be globally competitive.
The tuition policy is always based on the goal of providing outstanding education at good value to
both our island‐based and international community, while ensuring financial sustainability for the
School. It is also the School’s intention to give certainty to families regarding fees, manage the
School’s exchange rate risk and to comply with all applicable Indonesian regulations. The tuition
calculation policy the School has adapted is hence the following:
Tuition is fixed in IDR once a year in February for the following academic year. 50% of the tuition
is based on the current year’s IDR tuition fee, with an adjustment for Indonesian inflation. The
other 50% is based on the USD tuition base from the previous year, which is converted to IDR once
a year, using the School’s budget exchange rate. For the 2016/17 academic year, the applied
exchange rate is 14,000 IDR to 1 USD. The resulting tuition in IDR is then adjusted for any tuition
increases/changes. We are proud that tuition has not increased for the 2016/17 academic year,
for the 3rd year in a row.
Please note that school fees are subject to change based on the decision of the Board of Directors.
For any questions, please contact our finance department at ​accounting@greenschool.org​.