Why not - Bali is a wonderful place for tourists, and I thought I had to abide by the country's rules when I was a tourist.
It seems that Indonesia is a country that is quite friendly with cryptocurrencies as reported, it's just that you are not legal to use bitcoin as a legal tender there, so you must convert your bitcoin to fiat before paying for something. Simply put, don't break someone else's country rules just because you own bitcoin. If you want to spend bitcoin as legal tender then try El Salvador - you are free to spend it legally in that country.
I don't think banning Bitcoin as a payment method in Bali will make that destination becomes less interesting for tourists. It must be a beautiful, peaceful and friendly location to attract tourists and if you plan to visit that place, you don't have to restrict yourself to pay all expenses in Bitcoin.
Many ways to pay and if Bitcoin is prohibited, you will easily pick other available methods to enjoy your tour.
When you are traveling, for safety, only brings your hot wallets as many accidents can happen during your tour and you don't know what will come at your tour beginning. That prohibition is not a big matter with me as I can use fiat currency, e-wallets to make payments. I also don't want to bring my bitcoin around as I don't want to lose my coins by pickpocket (lose my phone). Bitcoin is my fortune for my family future and I want to keep it as safest as possible.