REPUBLIKA.CO.ID, JAKARTA -- The Central Bank of Indonesia (BI) declines all transactions performed with the speculative digital currency Bitcoin, according to an official.

"We have disapproved all Bitcoin transactions in Indonesia. Hence, we will fine and give penalty to the financial services providers, if they are still using the virtual currency," Enny Panggabean, the central bank's director executive of policy and payment system supervision, stated here, Friday.

Panggabean stated on Thursday that beside Indonesia, Bitcoin has been banned by other countries, because the virtual currency has failed to protect consumers.

"In short, the Bitcoin users could be excited and happy for now, but later they could feel the otherwise, because this digital currency has not yet been controlled by the authority," she remarked.

Bitcoin, the director further stressed, could harm the stability of the economy sector, because in its transaction, the digital currency could spark the steep fluctuation.

"In accordance to the Central Bank Regulation on Fintech, we have stated that all transactions performed with the virtual money would be denied, while some laws earlier have regulated that the authority only approves Rupiah as an official currency used in Indonesia," she stressed.

The Central Bank, Panggabean, will maintain coordination with the Financial Service Authority (OJK) and other ministries to oversee the Bitcoin transactions already performed in Indonesia.

The Finance Minister, Sri Mulyani Indrawati earlier said, she hoped, people would stop investing in the high-speculative digital currency, such as Bitcoin.

"We (Indonesian government) concern about the bubble or speculative effect that may occur because of this virtual investment (in Bitcoin)," the minister remarked.

Hence, she called on the people to choose more secured investments which have been approved by the authority.

"In term of ensuring security in investment, all investors should comply with rules issued by the authority," Sri Mulyani noted.

Meanwhile, on a different occasion, the OJK's Investment Alert Task Force also called on to the people to stay alert on using the virtual currency, including Bitcoin.

"The virtual currency is not part of the regulated investment instrument. Hence, this high-risk digital trade would be more speculative (than other instruments)," the chief of Investment Alert Task Force, Tongam L. Tobing said in his written statement received by Antara in Jakarta, Thursday.

Despite of the critics, the CEO of "bitcoin.co.id" website, Oscar Darmawan said the controversial currency was part of the block chain-based digital asset.

The Bitcoin's price mechanism was controlled by the supply and demand on the "block chain" tokens traded worldwide.

Therefore, he hoped the Bitcoin should be granted a special regulation by the authority in order to prevent the money-laundering and other scam activities. 

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