Crypto is Starting to Become Popular in Indonesia, BI Confirms That Bitcoin is not a Legal means of Payment

Bank Indonesia

KANALCOIN NEWS – Bank Indonesia (BI) emphasized that bitcoin is not a legal means of payment after crypto currency became popular in Indonesia. This was conveyed by the Governor of BI, Perry Warjiyo, at the CNBC Economic Outlook 2021 event, Thursday (25/2/2021).

Indonesia has been hit by a fever for cryptocurrencies in recent times. This cannot be separated from the increasing popularity of cryptocurrencies throughout the world, including Indonesia today. In fact, one by one, crypto investment brokers have started to appear in Indonesia.

Several smartphone applications that handle cryptocurrency investments are also mushrooming everywhere. This apparently caught the attention of the Governor of Bank Indonesia (BI), Perry Warjiyo.

Speaking at the CNBC Economic Outlook 2021 event which took place last Thursday (25/2/2021), Perry shared his views on bitcoin and cryptocurrencies. Indirectly, Perry was worried about the development of bitcoin.

Reported by from CNN Indonesia, Perry said that the legal means of payment and means of exchange in Indonesia is only the rupiah currency, which is still valid today.

“From the start, we have reminded and emphasized that bitcoin cannot be used as a legal tender, as well as other currencies besides rupiah,” said Perry.

Perry also briefly mentioned the 1945 Constitution and Law Number 7 of 2011 concerning Currency. Perry said that in the regulation, the legal currency for transactions in Indonesia is only rupiah.

In article 21 of Law Number 7 of 2011 concerning Currency, rupiah must be used in every transaction that has the purpose of payment, settlement, other obligations, which must be fulfilled with money, and other financial transactions.

Perry also emphasized that BI, as the official central bank in Indonesia, has the authority to print money for all types of payments using whatever currency.

“In accordance with the 1945 Constitution in Indonesia there is only one currency called the rupiah. So, all means of payment using coins, banknotes, digital money, must use rupiah and the authority lies with Bank Indonesia,” Perry said.

Meanwhile, the Head of the Bureau for Development and Market Development of Bappepti, Sahudi, appealed to the Indonesian people to remain careful if they want to buy bitcoin at this time. The reason is, the current bitcoin price is very high, while the volatility is very high.

Noted, currently the price of bitcoin if converted into rupiah currency can penetrate the price of around IDR 684 million per coin.

“The price of one bitcoin in rupiah reaches IDR 684 million. Imagine, this price is almost the same as the price of one housing unit, be careful. This is interesting here because the price continues to increase,” said Sahudi in the webinar Get to Know Physical Trading in Crypto Assets in Indonesia.


Muhammad Zaki Fajrul Haq
Author: Muhammad Zaki Fajrul Haq

Follow me at @mzfajrulhaq (Instagram) or @ZakiFajrul (Twitter).

Notify of
Inline Feedbacks
View all comments