It seems impossible to withdraw more than 2.5 million rupees at a time for some reason.
Is this correct?
If yes, why is that!?
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Indonesian ATMs generally won't let you withdraw more than 25 banknotes at a time. Since the largest denomination is only Rp. 100,000, this means 25 x 100k = 2.5 million. See eg. the Bank Mandiri FAQ.
It's worth remembering that there are parts of Indonesia where the legal minimum wage barely crosses 1 million per month, not to mention all the people in the unofficial economy who earn even less, so that 2.5M is actually quite a large amount in local terms.