Indonesia to Launch National Cryptocurrency Exchange by Year-End

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The Indonesian government is moving forward with its plan to establish a national cryptocurrency exchange, aiming for a launch before the end of the year. This initiative is part of the country’s broader strategy to regulate the rapidly growing digital asset market while ensuring consumer protection.

Government Confirms National Crypto Exchange Plans

According to local media reports, Indonesian authorities are finalizing the necessary steps to introduce a state-backed cryptocurrency exchange. The initiative, confirmed by Deputy Trade Minister Jerry Sambuaga, underscores the government’s commitment to creating a secure and regulated environment for crypto trading.

The exchange was initially scheduled for launch in 2021 but faced delays due to the complexity of the regulatory and operational setup. Officials emphasize the importance of a structured approach to avoid rushing the process and to ensure all safeguards are in place.

Objectives and Expected Impact

The introduction of a national exchange is intended to enhance market transparency, boost participant confidence, and attract institutional investors. By bringing crypto trading under a unified regulatory framework, the government aims to reduce fraud and promote healthy market growth.

Industry leaders like Pang Xue Kai, CEO of Tokocrypto—one of Indonesia’s 25 licensed crypto exchanges—have welcomed the move. He noted that a regulated national exchange could significantly increase local participation and support the emergence of homegrown blockchain projects.

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Regulatory Landscape for Cryptocurrencies in Indonesia

Indonesia classifies crypto assets as commodities rather than legal tender. This means cryptocurrencies can be traded but are not accepted as official payment methods. The government has also introduced tax regulations, including a capital gains tax on crypto investments and a 0.1% value-added tax on purchases.

Earlier this year, the Financial Services Authority (OJK) prohibited financial institutions from facilitating crypto sales. However, Trade Minister Muhammad Luthfi clarified that the government does not intend to impose an outright ban on crypto assets.

Public Interest and Market Growth

Indonesia has witnessed explosive growth in crypto adoption. Trading volume surged by 1,224% in 2021, reaching IDR 895.4 trillion. By mid-2022, the number of crypto users in the country exceeded 15.1 million, with transactions totaling IDR 212 trillion.

This growth persists despite religious considerations—the country’s top Islamic authority has declared cryptocurrencies haram, or forbidden under Islamic law. Nonetheless, public interest continues to rise, reflecting a strong retail and institutional appetite for digital assets.

Frequently Asked Questions

What is the purpose of Indonesia’s national cryptocurrency exchange?
The exchange aims to create a secure, regulated platform for trading digital assets. It is designed to protect consumers, reduce fraud, and encourage broader market participation.

Will cryptocurrencies become legal tender in Indonesia?
No. The Indonesian government classifies crypto as a commodity, not a payment method. This means it can be traded but not used for official transactions.

How will the exchange affect existing crypto platforms?
Licensed private exchanges like Tokocrypto will continue to operate but will likely need to comply with new national exchange guidelines. The goal is to unify standards and improve oversight.

Are crypto profits taxed in Indonesia?
Yes. Capital gains from crypto investments are subject to income tax, and a 0.1% VAT applies to crypto purchases.

Is cryptocurrency permissible under Islamic law in Indonesia?
The country’s highest Islamic authority has ruled that cryptocurrency is haram. However, this does not ban its use—it serves as guidance for Muslim citizens.

What has driven the growth of crypto trading in Indonesia?
High investor interest, increasing digital literacy, and the search for alternative investments have all contributed to the rapid expansion of Indonesia’s crypto market.