A country with nearly 280 million tech hungry people, one of the largest markets in Asia & a huge unbanked population are the factors driving crypto adoption in Indonesia. According to a recent report, 41% of all Indonesians own crypto. 64% of people in Indonesia believe it’s a hedge against inflation, and 61% of people believe that crypto is the future of money. According to the Ministry of Trade, transactions for currencies like Bitcoin grew over 14 times from a total of 60 trillion rupiahs ($4.1 billion) in 2020 to a total of 859 trillion rupiahs ($59.83 billion) in 2021.
This crypto growth in Indonesia is fuelled by many factors, but the most important ones are:
Robust & Receptive Regulatory Support from Government, Fast Adoption of Crypto by Local Tech Companies, Secure & Easy Cryptocurrency Trading.
Robust & Receptive Regulatory Support from Government
The Indonesian government through its research, community interactions & education programs quickly understood the challenges and opportunities in the crypto trade and introduced their first set of regulations back in 2019. Cryptocurrency trading as a commodity in Indonesia is legal and is officially regulated by the Commodity Futures Trading Regulatory Agency (BAPPEBTI), a body under the Ministry of Trade. Its main objective is to provide legal security and to protect the interests of Indonesian crypto consumers.
Fast adoption of crypto by local tech companies
Indonesia’s digital sector is set to surpass $150 billion over the next few years. A rapid surge in crypto adoption has compelled the tech sector to incorporate its visions with the crypto future. The cryptocurrency gaming industry is worth billions of dollars due to blockchain technology enabling real-world trading of non-fungible tokens (NFTs). NFT based games are booming in Indonesia and the people are making a living with the play-to-earn blockchain games. Recently, Javier Tan, Co-Founder & CEO of CREOENGINE, Indonesia’s leading NFT gaming company commented “Indonesian game developers have started to rise to the spotlight in order to revolutionise the gaming industry in Indonesia. I believe that the crypto ecosystem is playing a vital role in enlarging Indonesian’s gaming economy and gaming communities”.
Secure & easy cryptocurrency trading
Currently there are 17 companies registered and permitted by BAPPEBTI to exchange cryptocurrencies in Indonesia. Indodax, Indonesia’s leading exchange reported reaching 5,4 million members now, more than 100% increase compared to 2021. Oscar Darmawan, founder & CEO of INDODAX says “Legalizing a crypto asset in Indonesia is a long journey and is still not fully accomplished, but it is progressing smoothly and showing on a good track. It requires the whole ecosystem to support this movement to bring benefits to the entire industry. I believe Indonesia has the potential to be the leader in blockchain development in Asia”.
To discuss more on these topics & to shed light on the recent guidelines and regulations, Blackarrow Conferences is back post pandemic with the 4th edition of their flagship conference ‘BLOCKJAKARTA – Crypto 2022 & Beyond’; scheduled for the 30th of June in Jakarta at the Ritz Calrton Pacific Place.
Senior government ministers, government officers and industry leaders are speaking on the conference giving their expert advise on crucial topics concerning the crypto and digital economy. Catch in on the action on 30th June in Jakarta, register your seat now.
Ministry of Trade, Government of Indonesia | Ministry of Tourism & Creative Economy, Government of Indonesia | INDODAX | CREOENGINE | Yield App | Asosiasi Blockchain Indonesia | Government Blockchain Association | Indonesian Crypto Asset Traders Association | Indonesian Crypto Consumers Association | Frankfurt Blockchain School, Germany | Center for Evidence Based Blockchain | Irish Tech News | DailySocial | Bitcoin Insider | Coincodex | ICO Holder | The Cryptonomist | Blockchainmedia.id | Cryptopolitan | CoinQuora | CTv | Blocktides