Good article, and yes we have more and more people in Indonesia using/trading bitcoin every day. People in Indonesia can freely use Bitcoin at their own risk, because there is no regulation towards it.
Eventhough we (Indonesian people) can freely use bitcoin but we can't use it in any kind of payment inside Indonesia. What we can do here in Indonesia is treating Bitcoins as commodities instead of currencies, and obliging people to exchange their coins to fiat before making transactions, that's what an exchange (eg: bitcoin.co.id) is for.
That's true. There's this project from bitcoin.co.id with international bitcoin community in Indonesia that wants to convert Bali into a bitcoin island. They already have about 40 merchants that accept payment in Bitcoin. The great thing is, the bitcoin they receive will be automatically converted into Rupiah so they're only using Bitcoin as a media. They'll still get their money in rupiah so that won't violate the rules
