Bank Indonesia recently released a statement that they have started a crack down operation on unauthorized money changers and companies. A majority of those money changers are currently operating in Bali. Money changers were initially given an ultimatum by the central bank to register for a license so they can operate legally by April, 7, 2017.
According to Eni V. Panggabean, BI executive director of Payment System Policy and Oversight Department, the central back gave a fair chance to the unregistered money changers to register for the free license since October 2016. However money changers and offenders who failed to comply were met with a strict punishment which involved shutting and a 1 Billion IDR fine.
BI identified around 184 offenders which were working without a license before the deadline. 95 of them were issued disciplinary warning, 71 were shut down and only 18 applied for the legal permit. Bali had the most offenders of all the provinces.
The money changers with a legal license have a "KUPVA BB" logo on site and they have report their transactions to the bank on monthly basis. BI also launched a website monitoring & mapping money changers with KUPVA BB across Bali last year.
The offenders were sealed with a sticker with a disclaimer that they are no longer operational, removing or damaging that sticker is considered a serious crime according to Panggabean..
This step is taken to prevent tourists from getting ripped off but BI's motives go beyond that. The bank is also focusing on targeting the corruption spread by the officials, money launderers, drug smugglers, tax evasion and other offenders who front their money through money changers.