This Week In Crypto Asia: Indonesia Crosses $30 Billion In Crypto Transactions In 2024

Eugene
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Indonesia’s cryptocurrency market has witnessed a transformative year, with transactions from January to October 2024 surging to IDR 475.13 trillion (approximately $30 billion).

According to a 28 November 2024 local media report, this is a staggering 352.89% increase compared to the same period in 2023.

The surge in crypto activity  also surpassed transaction volumes from 2022 and 2023, which reached IDR 306.4 trillion (approximately $19.4 billion) and IDR 149.3 trillion (approximately $6.5 billion), respectively, as per data released by the Commodity Futures Trading Supervisory Agency (Bappebti).

However, while impressive, 2024’s figures still fall short of the $54 billion peak recorded in 2021 during the crypto market’s bullish cycle.

 

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Growing Appetite, Favourable Conditions For Crypto Growth In Indonesia 

The growth reflects an increased interest in cryptocurrency trading among Indonesians.

As of October 2024, 21.63 million registered customers were reported in the sector, with 716,000 active traders using seven licensed Physical Crypto Asset Traders (PFAK), Bappebti reported.

“This proves that crypto asset trading is one of the trading options that is in demand by the public,” Kasan, the Head Bappebti said in a press statement. Reportedly, the popularity of assets like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Solana (SOL), and Pepe (PEPE) has driven much of this interest.

Notably, 60% of crypto investors in Indonesia fall within the 18 to 30 age group. This indicates a strong adoption among the country’s younger generation.

This demographic is drawn to the financial opportunities and innovative technology underpinning blockchain assets, aligning Indonesia with other high-adoption nations like India and Nigeria, as per the Chainalysis Global Crypto Adoption Index.

In October 2024, the crypto market benefited from positive macroeconomic trends, including a decline in U.S. Federal Reserve interest rates and economic easing measures by China. These factors created stability and optimism, increasing capital flows to stablecoins and liquidity for major assets like Bitcoin.

“October is an important month for the crypto market, not only in Indonesia but also globally,” noted Tokocrypto CMO, Wan Iqbal, adding that Bitcoin reached an all-time high of $99,551 (around IDR 1.58 billion) on November 22, supported by Bitcoin ETFs and large institutional inflows.

The local market’s growth also aligns with broader regulatory efforts. Indonesia’s Financial Services Authority (OJK) is set to assume supervision of the crypto industry in January 2025, bringing it under the same regulatory framework as traditional financial instruments.

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What Growing Trends Indicate

The exponential growth in transaction volume highlights the increasing trust and familiarity Indonesians have with digital assets. A 352% rise year-over-year suggests that both retail and institutional participants are becoming more active in the market.

According to Chainalysis, the country is ranked third globally and first in the region, while enjoying the highest year-on-year growth in adoption of almost 200%.

Notably, Indonesia also leads the world in retail DeFi value received, highlighting Indonesia’s embrace of digital payment. Meanwhile, domestic interest in cryptocurrencies is rising fast, with 9.9 million users in 2021 to 28.52 million in 2024. With a population of more than 280 million, future potential growth prospects are sizable.

With a significant portion of investors under the ag of 30, the market is driven by younger, tech-savvy individuals. This demographic is likely to continue fueling growth as digital literacy and accessibility improve.

The shift to OJK oversight in 2025 and the rise in tax revenue indicate that the government sees crypto as a legitimate financial sector. This regulatory certainty is expected to attract more investors and operators, fostering long-term market stability.

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Crypto Tax Revenue And Economic Potential

The government’s growing focus on cryptocurrency is evident in its revenue collection. Taxes from crypto transactions between 2022 and October 2024 reached IDR 942.88 billion($59.4 million), showcasing the sector’s contribution to the economy.

Bappebti emphasizes that the rising number of transactions and customers could further optimize state revenues, strengthening Indonesia’s position as a leading crypto market.

The crypto tax revenue consists of $28 million in Income Tax Article 22(PPh 22) revenues for crypto sales transactions on exchanges and $31 million in VAT DN receipts for crypto purchase transactions on exchanges.

“The increase in the number of customers and crypto asset transactions will optimize state revenues while strengthening Indonesia’s position as one of the largest crypto markets in the world,” added Kasan.

 

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Eugene
Eugene

Eugene is a Technical content writer with over 5 years of experience in the Crypto domain specific to Blockchain technology, On-chain Data and Technical charts. Read More

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