Indonesian Crypto Market Reaches $30 Billion in 2024
The Indonesian cryptocurrency market has grown significantly, reaching over $30 billion in transactions from January to October this year. This is a 350% YoY increase and the largest total since the 2021 bull market.
Recovering from a Slump
Indonesia’s crypto journey has been turbulent since its peak of $54 billion in 2021. In 2022, transactions fell sharply to $19.4 billion due to new tax policies, including a 0.1% levy on crypto gains alongside standard taxation. The decline continued into 2023, with only $6.5 billion recorded in transactions.
However, 2024 has seen a great rebound, with transaction volumes exceeding those of the last two years combined. This recovery underlines Indonesia’s resilience and its position as a key player in the Oceana/Asia cryptocurrency ecosystem.
Indonesia’s Position in Global Crypto Adoption
Indonesia ranks third in Chainalysis’ Global Cryptocurrency Adoption Index, behind India and Nigeria. In fact, seven of the top ten countries in the index are from Asia and Oceana.
A key factor driving adoption in Indonesia is the country’s young demographic. More than 60% of crypto investors in Indonesia are under 30 years old, highlighting a shift to digital asset investment among the younger generation. This contrasts with the older, more traditional markets of Europe and the US, where crypto adoption comes from an older age bracket.
Policies and Market Impact
Government regulations have also played a role in Indonesia’s crypto resurgence. CoFTRA Regulation PerBa Number 9 of 2024, which eased restrictions on institutional investments, had a great influence on the September market rally.
On the top, the newly elected government led by President Prabowo Subianto revisits financial policies, including the dual taxation policy on crypto, considered highly controversial. These efforts will go toward smoothing the regulatory environment and giving way to growth in the digital asset sector.
Future Prospects
Indonesia’s $30 billion milestone marks the country’s rising importance in the global crypto landscape. With potential policy reforms and a strong base for adoption, the nation is poised to continue growing well past its previous highs. As Asia and Oceana remain at the forefront of cryptocurrency adoption, Indonesia remains a very important market to watch.
By fostering innovation and relaxing restrictions, it could become a hub for global cryptocurrency activity.
