Looking from the translation it seems like it is only illegal right now for indonesians to trade(aka buy/sell) bitcoin and send bitcoin to other people.

It's still legal as far as i can tell to be holding bitcoin.

Plus, it is impossible to enforce entirely. If you trade bitcoins with another person without an exchange, how is the government going to be able to tell that you have been using bitcoin at all? It's more of a statement of their attitude towards bitcoin rather than an actual regulation imo.

Don't panic because these things are to be expected. Governments don't like bitcoin, and it's been known for ages.