From January to October 2024, the Indonesian crypto market recorded $30 billion in transactions, marking a 350% year-over-year rise and the highest since 2021.
Although 2024 transaction totals have increased by over 350 percent, they are still far below Indonesia’s 2021 peak.
According to data from the Commodity Futures Trading Supervisory Agency, Indonesia registered roughly $6.5 billion in cryptocurrency transactions through the same period in 2023. This is a significant drop from the country’s estimated $19.4 billion in 2022.
Indonesian cryptocurrency recovery
After peaking at about $54 billion in 2021, the cryptocurrency market in Indonesia has been characterized by prolonged volatility. Due mainly to the government’s “dual taxation” policy, which levied a 0.1% tax on cryptocurrency earnings on top of regular gains taxes, 2022 saw a sharp decline.
With 2024 transaction totals surpassing those of the preceding two years combined, current data show that the Indonesian market is rebounding despite the setback.
According to Chainalysis’ Global Cryptocurrency Adoption Index, seven of the top ten nations are located in Indonesia, and the larger Oceana/Asia market is the top region by geography for cryptocurrency adoption worldwide. On the list, only Nigeria and India rank higher than Indonesia.
Adoption in Oceana
More than 60% of cryptocurrency investors in Indonesia are under 30, according to a recent Cointelegraph analysis. Although general trends indicate that “millennials”—those born between 1985 and 2004—own the majority of cryptocurrency worldwide, the comparatively more excellent adoption rates in Oceania and Indonesia may be explained by the age range skewing lower than in the US and Europe.
The September cryptocurrency rise may have been influenced by recent regulatory changes in Indonesia when the government loosened limitations on institutional investment by CoFTRA Regulation (PerBa) Number 9 of 2024.
Amid extensive policy revisions brought about by the recently appointed government’s reorganization efforts, which started after President Prabowo Subiant entered office in October, insiders have urged the government to reevaluate the previously mentioned “double tax” on cryptocurrency.
