Extremely sharp price fluctuations, very high risk for investors because the currency is illegal, there is no legal basis. They are tempted by attractive capital gains, but of course the risks are high too, "Jakarta, Sunday (10/12/2017). The risk for holders who transact using bitcoin, admitted Farial, is primarily concerned with default. Investors or investors will not be able to pursue profits if the company is unclear in origin or in the country of the middle of nowhere. "If the company fails to pay who will not be able to pursue it, yes if the company is in Indonesia, but if abroad how? Remember lots of investment bodong, because BI is still declaring it illegal," he explained. Because it is still illegal as a means of payment, the Financial Services Authority does not recommend investors investing in bitcoin. "Do not be tempted by the lure of high income," said Farial.
Bubble economy
While the impact of bitcoin speculation that was mentioned potentially trigger the economic bubble (bubble), Farial less agree. He estimates that it does not significantly affect the Indonesian economy. "Small is not up to the bubble, how many people play in bitcoin, not much, the risk is more to individual investors and this is to be cautious, because the risk is not predictable," he advised. He hopes there will be strict control and action from the government, BI and OJK on bitcoin transactions in Indonesia. "Before it's too late, immediately do the control from the government, BI, and OJK to do the legal registration if you want to be granted permission, otherwise there must be firm action and legal sanction," Farial said. The Governor of Bank Indonesia (BI), Agus Martowardojo earlier stated that the Indonesian people do not take risks using bitcoin virtual currency. Because bitcoin is not a valid payment instrument in Indonesia. "The position of BI remains, bitcoin is not a recognized payment system in Indonesia, so people do not use it as a payment system," Agus said at the office of the Coordinating Ministry for Economic Affairs, Jakarta, Thursday, December 7, 2017. He argues, there is a risk for bitcoin holders for transacting with unrecognized payment instruments in Indonesia. Unfortunately, when asked what are the risks for bitcoin holders, Agus did not explain in detail. "If anyone wants to know, go ahead, this message is strongly conveyed that it is not a recognized payment system in Indonesia, there is a risk for those who will try to hold the bitcoin," said the former Finance Minister.
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Digital currencies, such as bitcoin in Indonesia, are often used for speculation. This condition also triggered the concerns of the Minister of Finance (Finance), Sri Mulyani Indrawati will happen bubble (economic bubble) that can harm this country. "In Indonesia, the price (virtual currency) is higher and ogled as one form of investment," said Sri Mulyani. He hopes, virtual currency products such as bitcoin not be used as a venue for speculation that will endanger Indonesia. "We do not expect a speculation or bubble to cause losses," he said. Therefore, the government, Bank Indonesia (BI), and the Financial Services Authority (OJK) must maintain and monitor the use of virtual currency. "So the protection of those who use the goods (bitcoin), whether as investment or for other purposes must remain in the context of investment security and according to the signs in the field of finance and currency," said Sri Mulyani. According to him, virtual currency regulation is the authority of BI when it comes to formal currency in Indonesia. However, when it comes to means of payment or investment, it is the domain of OJK that permits a product that is safe for investment. "If (bitcoin) is a currency that is compulsory to a formal currency in Indonesia, it is something that the central bank must address, but if it involves a means of payment or investment, it should be the OJK that is issuing the permit for investment" Sri Mulyani said