Dr. Wahidin Raya Street No.1 Jakarta 10710
134 ID | EN
Minister of Finance Sri Mulyani Indrawati delivered information to media crews after the Financial System Stability Committee (KSSK) Meeting at Djuanda 1 Building, Ministry of Finance (MoF), Jakarta (22/01)

Minister of Finance: Bitcoin is Not in Line with Law

Jakarta, 25/01/2018 MoF - Ministry of Finance (MoF) supports actions taken by Bank Indonesia (BI) stating that bitcoin is an illegal and not approved means of payment in Indonesia.

Referring to Law no. 7 of 2011 concerning Currencies, it is affirmed that the currency is money issued by the Unitary State of the Republic of Indonesia and any transactions that have a purpose of payment, or other obligations that must be fulfilled with money, or other financial transactions conducted in the Republic of Indonesia territory are must be using Rupiah. Therefore the use of bitcoin as a virtual currency is not recognized as a valid payment instrument.

"We will also continue to function as a government that conveys the view that it is not in accordance with the Law to be used as a means of transaction," said Finance Minister Sri Mulyani Indrawati during a press conference at the Djuanda 1 Building of the Ministry of Finance on Tuesday (23/01).

The Minister also warned that bitcoin is a high-risk and speculative investment. Speculative virtual currency transactions can pose a risk of bubble value that not only harms investors but also potentially disrupts the stability of the financial system.

"But as an instrument of investment, we have warned that Bitcoin has no basis, and therefore is vulnerable to the use of the instrument for money laundring or for terrorism financing," explained the Minister. (zm / rsa)