Why Isn't Bitcoin A Transaction Tool In Indonesia?

Cryptocurrency (Trustec)

JAKARTA - Bitcoin continues to skyrocket after influential figures glance at choosing cryptocurrency as a profitable investment tool. Even the bitcoin exchange rate has touched IDR 754.9 million.

Previously, Tesla had announced that bitcoin owners could buy their electric cars with the crypto currency. Apparently, not only Elon Musk's electric car company is planning to implement this.

It is reported that Mastercard is also planning to do the same. No half-hearted, Mastercard will implement this plan in 2021.

After several giant companies support transactions using bitcoin, what about RI? The state financial authority, Bank Indonesia, has long ago emphasized that any cryptocurrency cannot be used for transactions. In this case, including virtual currency bitcoin.

This statement was made by BI in 2017. They claim that virtual currency is not a valid transaction tool. That means, cryptocurrency is still illegal to use as a means of payment or purchase.

They stated that the legal means of transaction in RI was rupiah. The statement is in accordance with Law No. 7 of 2011. This means that the use of crypto currency is not yet legal and can be subject to articles for violating established laws.

"In Indonesia, bitcoin is prohibited from being a medium of exchange, because our official medium of exchange is the rupiah. There are heavy sanctions such as the case of using dinars or dirhams in Depok if bitcoins are used as a medium of exchange, "said Heru Sutadi, Executive Director of the ICT Institute.

However, a number of payment system service providers in the country are not prohibited from using cryptocurrencies, including Mastercard and Visa. On the other hand, cryptocurrency in RI is only used as an investment tool.

"Currently, bitcoin is only considered an investment tool," added Heru.

Meanwhile, crypto currency trading in Indonesia is allowed. Although they cannot be used as a transaction tool, cryptocurrencies are tradable assets.

This is stated in the Minister of Trade Regulation No.99 of 2018 which states the General Policy for the Implementation of Crypto Asset Futures Trading and Bappebti Regulation (Perba) No. 5 of 2019 regarding the Technical Provisions for the Implementation of the Physical Crypto Asset Market in the Futures Exchange.