Eni Panggabean, Head of Bank Indonesia's Payment System Policy and Monitoring Department, said virtual currencies are not recognized as a legal or valid payment instrument in Indonesia through Bank Indonesia Regulation No. 18/40/PBI/2016 on the Implementation of Payment Transaction Processing as well as Bank Indonesia Regulation No. 19/12/PBI/2017 on the Implementation of Financial Technology.

As such, virtual currencies are forbidden payment instruments in Indonesia. Those who violate Bank Indonesia's regulation can expect heavy sanctions. Sanctions include fines or the loss of operating licenses.

Bank Indonesia is against the use of virtual currency because it is a risky and speculative affair considering there is no responsible authority, no official administrator, no underlying assets to base the virtual currency price, while trade values are highly volatile.

This implies that cryptocurrencies are vulnerable to bubble risks, and can be easier used for the purpose of money laundering or the financing of terrorist activities, hence impact negatively on Indonesia's financial system stability. Moreover, the use of virtual currencies undermines the sovereignty of the Indonesian rupiah within the territory of Indonesia.

The central bank of Indonesia said payment system operators include principal, switching operator, clearing operator, final settlement operator, issuer, acquirer, payment gateway operator, electronic wallet operator, and money transfer operator.