Xepeng Presents Conversion-First Approach for Digital Asset Use in Indonesia

February 06, 2026 at 07:47 AM EST

Conversion models enable merchants to support global digital preferences while maintaining Rupiah-based operations and regulatory compliance.

Denpasar, Bali, Indonesia, 6th Feb 2026 — Cryptocurrencies are often discussed as the future of payments, but for many Indonesian merchants, direct crypto payments introduce more complexity than benefit. The challenge lies not in demand, but in how digital assets fit within existing legal and operational frameworks.

Merchants in Indonesia operate within systems designed around Rupiah, from pricing and invoicing to tax reporting and bank settlement. Accepting crypto directly requires businesses to manage asset custody, monitor volatility, and reconcile transactions across separate systems, adding significant operational complexity. Direct cryptocurrency use as payment encounters regulatory restrictions in Indonesia, where Rupiah serves as the legal tender. Practical challenges include volatility exposure and operational complexities for merchants.

Regulatory considerations further complicate direct crypto acceptance. As Rupiah is the sole legal tender for domestic transactions, crypto-as-payment models raise concerns over compliance and consumer protection

A conversion-first model addresses these concerns by separating the customer’s source of value from the merchant’s settlement currency. Digital assets can be converted into Rupiah before funds reach the merchant, allowing businesses to maintain familiar workflows while expanding payment accessibility for international customers.

Penke Pancapuri, CEO of Xepeng, stated, “Conversion models provide a practical bridge between global digital preferences and local regulatory realities. Platforms like Xepeng facilitate this process, allowing merchants to capture international opportunities while operating fully within Rupiah-based systems.”

For tourism-heavy markets such as Bali, the model is particularly relevant. International visitors who hold digital assets can complete a simple, guided flow; merchants receive a clean Rupiah settlement accompanied by reconciliation details for accounting and audits. The result: tourists use the instruments they prefer, while merchants keep familiar, Rupiah-native operations.

By keeping settlements in Rupiah, merchants avoid handling digital assets altogether. Accounting remains straightforward, tax obligations are clearer, and operational risk is reduced. For many businesses, this approach offers a practical path to supporting cross-border payments without disrupting existing processes.

With the rise of digital asset adoption, platforms such as Xepeng facilitate the use of preferred digital instruments for international visitors while ensuring merchants receive compliant Rupiah settlements.

International travellers planning a trip to Bali who hold digital assets and want to know how they can use them locally can learn more at https://www.xepeng.com or contact hello@xepeng.com for more details.

About Xepeng

Xepeng develops a conversion platform tailored for Indonesian merchants, focusing on enabling Rupiah settlement for the merchants while maintaining compliance and operational simplicity. The system integrates sector-specific tools, backend processing, and compliance measures to support efficient and trustworthy operations.