Bali’s Governor Koster recently made a series of announcements that will significantly affect tourists visiting the island. On May 28th, Governor Koster declared a formal prohibition on foreigners using cryptocurrency in Bali. Additionally, he introduced new regulations concerning vehicle rentals and the reporting of complaints by tourists.
Despite the growing popularity and acceptance of cryptocurrencies worldwide, Bali’s officials have made it explicitly clear that digital currencies are illegal for payment purposes on the island. During a press conference, Governor Koster announced a crackdown on foreigners using cryptocurrency for transactions in Bali.
This ban encompasses all aspects, meaning that tourists and foreign investors are prohibited from using cryptocurrency as a form of payment at tourist attractions, hotels, restaurants, shops, and for any goods or services. Governor Koster emphasized that “foreign tourists who engage in inappropriate behavior, violate their visa permits, use crypto for payments, or break other regulations will face strict consequences.”
The governor’s concerns extend beyond cryptocurrency to foreigners conducting business without the necessary permits, visas, and licenses. Governor Koster highlighted the interconnectedness of these issues, indicating that strict actions would be taken against violators.
He stated that these actions could include deportation, administrative penalties, criminal charges, closure of businesses, and other severe sanctions for those who violate Indonesia’s financial and immigration laws.
Furthermore, violations regarding the use of the Indonesian currency, Rupiah, will result in administrative sanctions such as written warnings, fines, and bans on participating in financial transactions.
The press conference was attended by prominent officials from Bali, including the Chief Inspector of Bali Police, General Putu Jayan Danu Putra, and the Head of Bank Indonesia for Bali, Trisno Nugroho. Nugroho confirmed that while cryptocurrency is legal in Indonesia as an asset, its use as a payment method is banned.
Governor Koster provided a clear explanation of the regulations regarding foreign business transactions. He stressed the importance of understanding these laws for tourists, digital nomads, expats, potential investors, and business owners in Indonesia.
Moreover, Koster stated that individuals conducting foreign exchange activities without permission from Bank Indonesia could face punishments ranging from one to five years of imprisonment and fines ranging from Rp50 million (US$3,300) to Rp22 billion (US$1.4 million).
While the formal ban on cryptocurrency and the crackdown announcement may not interest the majority of tourists directly, it underscores the Bali Provincial government’s commitment to enforce the Acceleration of Bali Tourism Governance.
Last week, Tjokorda Bagus Pemayun, the Head of the Bali Tourism Office, announced the deployment of a second specialized task force to crackdown on foreigners who break the law and disrespect cultural norms on the island.
Pemayun emphasized that the task force’s role extends beyond supervising tourists and encompasses the supervision and control of all tourism activities, as well as maintaining public order related to tourism.
Although the task force will primarily focus on addressing misbehaving tourists, its objective is to ensure that all tourism operators on the island fulfill their responsibilities in providing tourists with the necessary information and resources for a respectful, enjoyable, and fulfilling stay.
