Indonesia has officially joined Japan, Thailand, Vietnam, Laos, and Cambodia on the list of Asia’s cheapest travel destinations, following a sharp plunge in its currency. The rupiah recently fell to its lowest level in over two decades, making travel significantly more affordable for international visitors. This shift not only puts Indonesia in direct competition with its Southeast Asian neighbors on value, but also opens new doors for budget travelers in 2025. From currency updates to tourism trends, here’s everything you need to know about why Indonesia is now one of the best low-cost destinations in the region.

On Tuesday, the Indonesian rupiah dropped to 16,642 against the US dollar—its weakest since the 1998 Asian financial crisis. The rupiah has fallen over 3% this year, making it one of the poorest-performing emerging market currencies in 2025. But for travelers, this downturn brings a silver lining—Indonesia is now more budget-friendly than ever.

Indonesia Becomes a Top Pick for Affordable Travel

With the rupiah at historic lows, international travelers are now getting more for their money across Indonesia. Whether it’s luxury resorts in Bali, volcano hikes in Java, or beach-hopping in the Gili Islands, everything from accommodations to dining and experiences is significantly cheaper.

This surge in value positions Indonesia alongside other destinations with favorable exchange rates, including Japan, Thailand, Vietnam, Laos, and Cambodia—countries now seen as top value-for-money travel picks across Asia.

Bank Indonesia Steps In, But Pressure Remains

In response to the rapid depreciation, Bank Indonesia stepped in with what it called “bold and measured” actions, intervening in the foreign exchange and bond markets. Despite these efforts, concerns over global economic conditions, U.S. policy shifts, and Indonesia’s own fiscal direction have weighed heavily on the rupiah.

Investor confidence has also been shaken by growing deficits and increased military influence in domestic affairs, all of which contribute to the currency’s prolonged weakness.

Southeast Asia’s Currency Trends Favor Budget Travelers

As multiple Asian currencies continue to weaken, the travel value in the region has never been better. Here’s how the current exchange rates stack up for some of the most budget-friendly destinations:

• Japanese Yen – 150.54 per USD | 161.90 per Euro
• Vietnamese Dong (VND) – 25,570 per USD | 27,596 per Euro
• Laotian Kip (LAK) – 21,661 per USD | 23,380 per Euro
• Indonesian Rupiah (IDR) – 16,580 per USD | 17,873 per Euro
• Cambodian Riel (KHR) – 4,015 per USD | 4,320 per Euro
• Thai Baht (THB) – 33.97 per USD | 36.54 per Euro

With the rupiah hitting a decades low, Indonesia is now one of the most affordable travel options in Southeast Asia—on par with or even more budget-friendly than its neighbors.

Indonesia has joined Japan, Thailand, Vietnam, Laos, and Cambodia as a cheap travel destination after the rupiah sank to its lowest level in over two decades, making it one of the best-value spots in Asia right now.

A Golden Window for Tourists and Travel Planners

For travelers eager to explore without overspending, this is the ideal time to visit Southeast Asia. From Thailand’s vibrant street food and temples to Japan’s culture-rich cities and Cambodia’s ancient ruins, the region is offering premium experiences at reduced prices.

Indonesia’s inclusion in this circle of value-rich destinations means travel advisors can now craft highly affordable itineraries that combine multiple countries—without compromising on quality or adventure.

Whether you’re a solo traveler, a family planning a long-haul vacation, or an agent building a dream package, Indonesia now delivers unbeatable bang for your buck—alongside Thailand, Vietnam, Laos, Cambodia, and even Japan.

Budget City Guide Exploring the Best of Indonesia, Japan, Thailand, Vietnam, Laos and Cambodia

Indonesia – Yogyakarta

Why go: Culture, temples, affordable food
Top places to visit:

• Borobudur Temple – the world’s largest Buddhist temple
• Prambanan Temple – stunning Hindu architecture
• Malioboro Street – shop local crafts and enjoy street eats
  Things to do:
• Try Gudeg (sweet jackfruit stew)
• Watch a Ramayana ballet at Prambanan
• Explore underground mosques and hidden ruins

Japan – Osaka

Why go: Street food, nightlife, budget-friendly city stays
Top places to visit:

• Dotonbori – neon lights and canal vibes
• Osaka Castle – historical landmark with gardens
• Kuromon Ichiba Market – eat your way through Japanese street snacks
  Things to do:
• Take a day trip to Kyoto or Nara
• Visit Universal Studios Japan (discount tickets often available)
• Eat cheap local dishes like takoyaki and okonomiyaki

Thailand – Chiang Mai

Why go: Laid-back, spiritual, nature-rich, affordable
Top places to visit:

• Doi Suthep Temple – panoramic views of the city
• Old City Temples – Wat Chedi Luang, Wat Phra Singh
• Night Bazaar – budget shopping heaven
  Things to do:
• Join a Thai cooking class
• Visit elephant sanctuaries (ethical ones only!)
• Get a massage for under $10

Vietnam – Da Nang

Why go: Beaches, mountains, city life—all in one
Top places to visit:

• My Khe Beach – clean, quiet, free
• Marble Mountains – caves, temples, and views
• Dragon Bridge – lights up and breathes fire on weekends
  Things to do:
• Take a day trip to Hoi An Ancient Town
• Try Mi Quang noodles and street coffee
• Visit Ba Na Hills and the Golden Bridge

Laos – Luang Prabang

Why go: Peaceful, spiritual, deeply cultural
Top places to visit:

• Kuang Si Waterfalls – turquoise pools and hikes
• Mount Phousi – sunset views over the Mekong
• Royal Palace Museum – glimpse into Laos history
  Things to do:
• Watch the sunrise alms giving ceremony
• Take a river cruise along the Mekong
• Visit night markets for local snacks and souvenirs

Cambodia – Battambang

Why go: Local charm, off the beaten path, artsy
Top places to visit:

• Bamboo Train – quirky countryside ride
• Phnom Sampeau – temples and Killing Caves
• Wat Banan Temple – mini Angkor with far fewer crowds
  Things to do:
• Take a bike tour through rice fields
• Watch a performance at Phare Ponleu Selpak circus
• Explore art galleries and local cafes

The post Indonesia Joins Japan, Thailand, Vietnam, Laos and Cambodia as Cheap Travel Destination after Currency Sinks to Decades Low: New Updates You Need to Know appeared first on Travel And Tour World.