How to handle payments while travelling to Indonesia?

Leave your Indian rupees at home; if you must - you can exchange them for Indonesian currency at your departure airport.

The easiest, most convenient and secured way:

1. Pay directly with your card, if the merchant accepts it. Note that some merchants might try to charge you an extra fee for using a credit card (this is not allowed - many businesses assume customers don't know). Insist on paying the actual price. If they charge you extra, keep the receipt and complain directly to your bank. If the merchant asks do you want to be billed in Indonesian rupees or any other currency, select indonesian rupees.

2. Withdraw cash from an ATM using your card. If the ATM offers to convert the amount to your local currency, say No (this is the same trick as the point of sale it is also sometimes called DCC) your bank will give you a better rate. Keep in mind each time you withdraw you will be paying fees; so withdraw the maximum amount you would need on each transaction.

Do NOT bring USD to Indonesia. For whatever reason, money changers accept this currency only if your bill are in perfect condition. By perfect, I mean like you've just printed them hours ago.

Buy Euro, Malaysian Ringgit or Singapore dollar if you have good price in India.

I am not sure if Indian Rupee are easy to change. Most likely, it is.

Your Visa card will also work. But Indonesia ATM are annoying as you can only retrieve 1 million IDR (80 USD) at a time. And you have to pay bank fees each time.