The Governor of the popular Indonesian province and tourist hot spot, Bali, recently issued a strong warning against using cryptocurrencies as a form of payment in the region.
During a press conference on May 28, 2023, Governor Wayne Koster emphasized that tourists who attempt to use Bitcoin or other cryptocurrencies for transactions will face severe consequences. He firmly reiterated that only Indonesia’s official fiat currency, the Indonesian rupiah, is recognized as legal tender in the region.
Governor Koster made it explicitly clear that violations of this regulation can lead to penalties such as imprisonment for up to one year and a fine of 200 million rupiahs ($13,000). The Governor also outlined the penalties, which include deportation, administrative sanctions, criminal fines, closure of commercial establishments involved in such transactions, and other severe measures.
Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia, was also present at the press conference. Nugroho reaffirmed that while trading cryptocurrencies is permissible under the law, utilizing them as a medium of exchange for payments is strictly prohibited.
The Governor’s announcement comes shortly after an investigation published in Kompas, the nation’s official newspaper, on May 26, 2023, revealed that several businesses in Bali, including a meditation retreat, a motorcycle rental company, and a café with a Bitcoin theme, were allegedly accepting cryptocurrency payments. Data from Coinmap also show that 36 businesses in Bali accept cryptocurrencies. According to the data, most of these are located in Ubud, a popular tourist destination.
Meanwhile, the Indonesian government is preparing to establish a national cryptocurrency exchange. The bourse was initially planned to be operational by the end of 2022, but it was delayed, and it is now set to launch in June 2023. According to reports, the government is currently reviewing the crypto exchanges that would participate in the project.
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