The regulation of cryptocurrencies in Indonesia is moving from one governmental jurisdiction to another, which promises to impact the rapidly emerging digital assets market within the country. This shift will affect investors as well as businesses within the assets market.
Cryptocurrency Transactions: New Trends in Indonesia
The past decade has seen an exponential rise in cryptocurrencies, transforming from a single niche technology into a popular asset or even a payment method in some cases. The source highlights Indonesia’s active participation in this global trend. In October 2024, Indonesia hosts a whopping 21 million crypto investors with transaction values soaring to Rp 48.44 trillion. However, Indonesia still classifies cryptocurrencies as financial assets and does not recognize them as currency. The Indonesian Rupiah remains the only legal currency within the country.
The Shift of Governance: Toward Financial Services from Commodity Futures
Until now, the trading of cryptocurrency assets in Indonesia was regulated and supervised by the Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi, or BAPPEBTI). BAPPEBTI is the government institution that has control over regulation and supervision in commodity futures trading, including cryptocurrency, because it was considered a commodity in the futures exchange market.
This has now changed, though. On December 31, 2024, the Indonesian government issued Government Regulation Number 49 Year 2024 (GR 49/2024). In this regulation, the government requires that the jurisdiction over regulation and supervision of digital financial assets, which include crypto assets and financial derivatives, be removed from BAPPEBTI and given to the Financial Services Authority (Otoritas Jasa Keuangan, or OJK).
The OJK: A Major New Regulator
The OJK is the government body that has absorptive regulatory power within the entire financial services sector in Indonesia. This includes a wide array of services such as banking, the capital market, and other non-bank financial services like insurance, retirement funds, funded institutions, and other financial entities. The OJK now supervises crypto assets as a result of the amendment to the OJK’s duties under Law Number 4 Year 2023. This is a movement to bring the regulated governance of crypto assets under the general financial system regulation in Indonesia.
What This Means for the Crypto Market: The Change of Strategy
Investing in crypto is now managed and supervised by OJK. Under this supervisory authority, all marketing and trading of crypto assets and the supporting services must now comply with the rules and requirements of OJK. This change is anticipated to transform the operational strategies of crypto businesses in Indonesia, probably making them more restrictive.
Gradual Control Relinquish: A Continuum Period
The transfer of regulatory responsibility is not instantaneous. The regulation states that the obligations pertaining to the duties were effective as of January 10, 2025. In the window of time from December 31, 2024, up to January 10, 2025, BAPPEBTI still had control over granting or renewing licenses pertaining to crypto products, parties, and activities and issuing strategic policy directives.
Moreover, licenses, approvals, and registrations of products or instruments issued by BAPPEBTI prior to the transfer date are valid as long as they are not inconsistent with prevailing laws and regulations. All licensing processes that are not completed by the cut-off date of January 10, 2025, will be the domain of OJK.
Setting the Standards: OJK’s Implementing Regulation
In an effort to further detail the governance of trading in crypto assets, OJK has now issued a separate implementing regulation known as Peraturan Otoritas Jasa Keuangan Nomor 27 Tahun 2024 (POJK 27/2024). This regulation has been effective as of January 10, 2025.
Inasmuch as POJK 27/2024 aims to enhance rigid control over various business operations, it comes with a six-month grace period for compliance regarding governance, data, and personal information, as well as consumer protection. Nonetheless, the special provisions on consumer protection for traders will become effective on January 12, 2025.
The Shift in Oversight of Crypto Assets to the OJK: A New Era for Indonesia’s Crypto Market
The shift in supervision of crypto assets to the OJK indicates a new era for the cryptocurrency market in Indonesia. The transfer is bound to come with improved regulatory clarity alongside heightened credibility for the sector. However, further sector impact will depend on the manner of implementation of the OJK’s regulations and its adequacy in safeguarding innovation, consumer protection, and financial stability.
