Indonesian Cryptocurrency Market Sees Strong Recovery with Over $30 Billion in Transactions for 2024

Data from the Commodity Futures Trading Supervisory Agency (CoFTRA) reveals that cryptocurrency transactions totaled approximately $6.5 billion during the same period in 2023, a sharp drop from the estimated $19.4 billion recorded for all of 2022.  

Indonesia’s cryptocurrency market has faced significant challenges since reaching a $54 billion peak in 2021. 

The downturn in 2022 was largely driven by the government’s “dual taxation” policy, which imposed a 0.1% tax on crypto gains in addition to standard capital gains taxes.  

Despite these obstacles, the market has shown signs of recovery. 2024 transaction volumes have already surpassed the combined totals of the previous two years, reflecting growing confidence and activity. 

The Asia-Oceania region, including Indonesia, continues to lead global cryptocurrency adoption, according to Chainalysis’ Global Cryptocurrency Adoption Index. Indonesia ranks third globally, following India and Nigeria, with seven of the top ten countries in the index located in the region.  

Over 60% of Indonesian crypto investors are under 30 years old, aligning with broader trends showing millennials (born between 1985 and 2004) dominate crypto ownership worldwide. 

However, the region’s higher adoption rates may be influenced by an even younger demographic compared to Western markets.  

Recent policy changes have further bolstered the market. In September, the government eased restrictions on institutional investments under CoFTRA Regulation (PerBa) Number 9 of 2024, contributing to a noticeable rally in the crypto sector.  

With the recent reorganization under President Prabowo Subianto’s administration, industry insiders are urging the government to reconsider the “double tax” policy as part of broader reforms.