Indonesia’s Crypto Industry Regulatory Shift: A Comprehensive Analysis
The Urgent Need for Crypto Regulation Transition in Indonesia
The Indonesian government is actively working to transfer the responsibility of overseeing the cryptocurrency sector from the Commodity Futures Trading Agency (Bappebti) under the Trade Ministry to the Financial Services Authority (OJK). This shift is crucial as the deadline for the transition approaches rapidly.
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Current Status of the Transition
During an event marking the opening of the 2025 stock market in Jakarta, OJK Chairman Mahendra Siregar shared insights into the ongoing preparations for this regulatory transition. According to reports from the Jakarta Globe, the necessary discussions and arrangements are in progress, and a draft government regulation has been formally prepared.
Challenges in the Transition Process
The scheduled completion for the transfer is January 12, and it aims to move the supervision of the crypto industry from Bappebti, which has been handling digital assets since 2018, to the OJK. However, the transition process has encountered delays due to the absence of a supportive government regulation, as explained by Finance Minister Sri Mulyani Indrawati. This plan was initially introduced in late 2022 and is expected to become law once all provisions are agreed upon by the legislative and executive branches of the Indonesian government.
Efforts for a Seamless Transition
As of January 2, 2025, the official bill for the transition has not yet been released. Nonetheless, the OJK Chairman assured that the agency is collaborating closely with the Trade Ministry to ensure a smooth process. Mahendra emphasized that once the regulation is issued, it will provide the legal foundation for the transition.
The Potential Impact of the Regulatory Shift
The transition to OJK is anticipated to establish a more transparent and comprehensive regulatory framework that aligns with international standards. Bappebti Chief Kasan mentioned that existing rules will remain in effect until the new regulation is implemented.
OJK’s Preparations and Global Insights
According to OJK Commissioner Hasan Fawzi, the agency has conducted thorough studies on global practices in crypto regulation and has prepared its workforce for the upcoming role.
Reactions from Industry Experts and Stakeholders
Nailul Huda, a digital economy expert, criticized the delay, suggesting reluctance from the Trade Ministry to relinquish its supervisory role. He believes that while OJK oversight may bring stricter regulations, its experience will ultimately benefit investors.
Industry Perspectives on the Transition
Several brokers and crypto exchanges express optimism, believing that the transition will streamline regulatory oversight and allow for direct transactions under the supervision of OJK and the Bank of Indonesia.
Indonesia’s Crypto Landscape: Challenges and Growth
The Indonesian government has faced criticism for its regulatory measures, including prohibiting cryptocurrencies as a direct payment method for goods and services. Additionally, the country’s dual taxation on crypto has been seen as a barrier to market growth.
Adoption and Market Growth
Despite these challenges, Indonesia boasts one of the highest crypto adoption rates globally. In 2023, Bappebti reported that over 18.51 million people were investing in cryptocurrencies. That year, Indonesia ranked 7th in Chainalysis’ global crypto adoption ranks.
Remarkable Growth in 2024
By 2024, Indonesia climbed to the 3rd position, surpassing countries like the United States and Russia, becoming one of the largest nations by the number of crypto traders. Furthermore, the country’s market experienced a 350% year-on-year increase in crypto transactions, exceeding $30 billion between January and October.
