Indonesia’s cryptocurrency market has witnessed remarkable growth in 2024, with transactions totaling over $30 billion between January and October. This marks a staggering 350% increase compared to the same period in 2023, signaling a recovery from the country’s cryptocurrency slump in 2022.
A Look at Indonesia’s Crypto Recovery
The latest figures, released by the Commodity Futures Trading Supervisory Agency, highlight a sharp rebound. In 2023, Indonesia’s crypto transactions amounted to only $6.5 billion during the same timeframe, far below the $19.4 billion recorded throughout 2022. However, the current totals remain below Indonesia’s 2021 peak of $54 billion, which occurred during the global crypto bull market.
One significant factor behind the 2022 decline was Indonesia’s introduction of a “dual taxation” policy, which imposed a 0.1% tax on crypto gains in addition to standard capital gains taxes.
Despite this, 2024 marks a turnaround, with transaction volumes for the first 10 months already surpassing the combined totals of 2022 and 2023.
Indonesia Leads in Global Crypto Adoption
Indonesia continues to rank among the top nations for cryptocurrency adoption, holding third place in Chainalysis’ Global Cryptocurrency Adoption Index. The broader Oceania and Asia region dominate global adoption metrics, with seven of the top ten countries located in this area. Only India and Nigeria rank higher than Indonesia on the list.
The demographic composition of Indonesia’s crypto investors skews young, with over 60% under the age of 30. Millennials—individuals born between 1985 and 2004—constitute the majority of crypto holders globally, but Oceania’s and Indonesia’s younger average investor age contrasts with trends seen in Europe and the US.
Policy Shifts and Market Momentum
The Indonesian government has taken steps to foster crypto market growth. In September 2024, regulatory changes through CoFTRA Regulation Number 9 relaxed restrictions on institutional crypto investment, contributing to a market rally.
However, industry insiders are urging the government to revisit its dual taxation policy. Calls for reform have grown louder following the reorganization efforts under President Prabowo Subianto, who assumed office in October 2024. These policy shifts could play a pivotal role in shaping the country’s future as a global cryptocurrency hub.
