In a move aimed at curbing the use of cryptocurrencies in the tourism sector, the Bali Provincial Government has announced its intention to enforce strict penalties on foreign tourists utilizing digital currencies as a means of payment at local establishments. This initiative is part of a broader effort to safeguard the integrity of Indonesia’s official currency, the rupiah.
During a recent press conference focused on Bali’s tourism development, Governor Wayan Koster emphasized the importance of appropriate behaviour by foreign visitors. This includes respecting visa limitations and adhering to the country’s stringent regulations regarding currency use. Governor Koster sternly warned that violating these provisions would lead to severe consequences.
The sanctions imposed on tourists found using cryptocurrencies range from deportation and administrative penalties to criminal charges and the closure of businesses involved in facilitating such transactions.
These measures serve as an extension of Law No. 7 of 2011, which designates the rupiah as the sole permissible form of payment within Indonesia. Violations of this law can result in imprisonment for up to one year and fines of up to Rp200 million (approximately $13,300).
Furthermore, Law No. 4 of 2023 has been implemented to strengthen the country’s financial sector by explicitly enforcing the rupiah as Indonesia’s official currency. Unauthorized foreign exchange activities may lead to penalties ranging from a minimum one-year prison sentence to a maximum of five years, accompanied by substantial fines.
Despite legal restrictions and the potential penalties, it appears that many tourists are choosing to disregard the law and use cryptocurrencies for transactions due to lax enforcement.
Notably, while cryptocurrencies are prohibited as payment instruments, they are still permissible as assets in Indonesia, as clarified by Trisno Nugroho, the head of Bank Indonesia (BI), Bali Representative Office.
The surge in digital currency transactions within Bali, renowned as a popular tourist destination, has ignited a global conversation surrounding the legality and acceptability of cryptocurrencies.
As the Bali Provincial Government takes a firm stand to preserve the integrity of its local currency, the crackdown on tourists using cryptocurrencies sends a clear message that adherence to the country’s regulations is paramount.
Foreign visitors are urged to respect these laws to avoid serious legal repercussions and contribute to maintaining the stability of Indonesia’s financial system.
While the Bali Provincial Government’s efforts may face challenges in enforcing the restrictions effectively, implementing stricter penalties signals both tourists and the global community about the Indonesian government’s commitment to upholding the rupiah as the nation’s official currency.
The ongoing evolution of the conversation around cryptocurrencies will continue to shape the tourism sector, raising questions about their future role in international transactions.
