In a recent move, Bali’s government has taken a stand against tourists making payments for goods and services using cryptocurrency. The governor of the island, Wayan Koster, reiterated that the only legal tender in Indonesia is its fiat currency.
Bali’s Stand against Crypto Payments
On May 28, according to the Antara, a government-owned news agency, Governor Koster hosted a press conference where he indicated that tourists who “use crypto as a means of payment will be dealt with firmly.”
The governor added, “Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises and other tough sanctions.” The conference was attended by key officials, including Bali’s chief police inspector and Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia — the country’s central bank.
Nugroho further affirmed that while trading crypto is permitted, its use as a form of payment is strictly prohibited.
Indonesia’s Legal Tender: Rupiah
Reinforcing the currency regulations, Koster stated that the only acceptable form of payment in the country is the Indonesian Rupiah. Using other currencies for payments could result in stringent penalties, including a maximum potential sentence of one year in prison and a fine of 200 million rupiah ($13,000).
This reminder from the governor comes in light of a recent investigative report published on May 26 by Kompas, a prominent Indonesian newspaper.
Cryptocurrency Use in Bali Businesses
The Kompas investigation revealed several Bali-based businesses accepting cryptocurrency payments. This list included diverse establishments such as a meditation retreat, a motorbike rental venture, and a cryptocurrency-themed café.
Coinmap, a project mapping businesses accepting crypto, indicates there are 36 such businesses in Bali, predominantly in Ubud, a popular tourist destination.
Indonesia’s Path to Crypto Exchange
Despite this hardened stance against cryptocurrency usage in payments, Indonesia is preparing to launch a national crypto exchange by the following month.
The Ministry of Trade in Indonesia is expected to act as a custodian and clearing house for local cryptocurrency markets. The platform was initially planned to be operational by the end of 2022 but has experienced delays.
