Indonesian cryptocurrency transactions surge over 350% to $30B in
Indonesian cryptocurrency transactions surge over 350% to $30B in
Indonesia’s cryptocurrency market has seen a remarkable recovery in 2024, with transaction volumes exceeding $30 billion between January and October. This represents a staggering 350% year-over-year increase from $6.5 billion in the same period in 2023, according to the Commodity Futures Trading Supervisory Agency (CoFTRA). However, the figure remains below the $54 billion peak recorded during the 2021 bull market.
The sharp decline in transaction volumes after 2021 was largely attributed to the government’s “dual taxation” policy, which added a 0.1% tax on crypto gains atop standard income taxes. However, recent policy adjustments, including relaxed restrictions on institutional investment under CoFTRA Regulation Number 9 of 2024, have contributed to renewed market activity.
Indonesia remains a key player in global cryptocurrency adoption, ranking third on the Global Cryptocurrency Adoption Index by Chainalysis, behind only India and Nigeria. The Oceana/Asia region continues to dominate adoption rates, with seven of the top ten countries in the index located in this area.
Youth-Driven growth
The youthful demographic of Indonesia’s crypto market plays a pivotal role in its resurgence. Over 60% of the nation’s crypto investors are under 30, highlighting a trend where younger populations are driving adoption. Millennials and Gen Z investors are particularly active, aligning with broader trends in Oceana, where adoption rates skew higher compared to Europe and the U.S.
As Indonesia moves forward, industry insiders have called on the government to reconsider its “dual tax” policy to sustain this momentum. With ongoing policy reform under President Prabowo Subianto’s administration, the country is well-positioned to further solidify its standing as a global cryptocurrency leader.
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