Originally published on: November 29, 2024
The Indonesian cryptocurrency market has witnessed a remarkable surge, with transactions exceeding $30 billion between January and October 2024. This impressive figure marks a staggering 350% increase compared to the previous year and represents the highest total since the 2021 bull market.
According to data from the Commodity Futures Trading Supervisory Agency, Indonesia saw approximately $6.5 billion in cryptocurrency transactions during the same period in 2023, a notable decline from the estimated $19.4 billion recorded in 2022.
Following the peak of around $54 billion in 2021, the Indonesian cryptocurrency market experienced a downturn in 2022 due to the implementation of the government’s “dual taxation” policy, which imposed an additional 0.1% tax on crypto gains alongside standard gains taxes.
Despite this setback, recent indicators suggest a recovery in the Indonesian market, with transaction totals for 2024 surpassing the combined totals of the previous two years.
Chainalysis’ Global Cryptocurrency Adoption index ranks Indonesia as the third country in terms of cryptocurrency adoption, highlighting its prominence in the Oceana/Asia region. This underscores Indonesia’s position as a key player in the global cryptocurrency landscape, with only India and Nigeria surpassing its adoption rates.
Recent reports reveal that over 60% of cryptocurrency investors in Indonesia are under the age of 30, indicating a strong penchant for digital assets among the younger demographic. This trend aligns with the broader shift towards cryptocurrency adoption among millennials globally.
Policy changes in Indonesia, including the relaxation of restrictions on institutional investment through CoFTRA Regulation (PerBa) Number 9 of 2024, have contributed to a September cryptocurrency rally. Insiders are urging the government to reconsider the “double tax” on crypto, as part of ongoing policy reforms under the new administration led by President Prabowo Subianto.
As the Indonesian cryptocurrency market continues to evolve and attract investors, it remains a pivotal player in the global crypto ecosystem. Stay informed with the latest developments in the crypto industry by subscribing to our newsletter. Join us every Monday for updates on crypto laws and guidelines to make informed decisions for your ventures. Subscribe now and be part of the future of finance.