Transaction totals in 2024 are up more than 350% year-over-year but still far lower than Indonesia’s 2021 highs.
The Indonesian cryptocurrency market reported over $30 billion in transactions from January to October 2024, a 350% year-over-year surge and the highest total since the 2021 bull market.
Data from the Commodity Futures Trading Supervisory Agency shows that during the same period in 2023, Indonesia’s crypto transactions reached only $6.5 billion, significantly lower than the $19.4 billion recorded for all of 2022.
Signs of a Crypto Recovery in Indonesia
Indonesia’s cryptocurrency market has shown signs of recovery after a significant decline following its 2021 peak of approximately $54 billion.
The downturn in 2022 was largely attributed to the government’s “dual taxation” policy, which introduced a 0.1% tax on crypto gains in addition to standard gains taxes.
Despite this setback, 2024 transaction totals have already surpassed the combined figures from 2022 and 2023, signaling a resurgence in market activity.
According to Chainalysis’ Global Cryptocurrency Adoption Index, Indonesia remains a key player in the Oceania and Asia regions, which lead the world in cryptocurrency adoption.
Indonesia ranks third globally, behind only India and Nigeria. Seven of the top ten countries for crypto adoption are from the Oceania/Asia region.
Crypto Adoption Among Young Indonesians
A recent Cointelegraph report highlighted that over 60% of cryptocurrency investors in Indonesia are under 30 years old.
While millennials (born between 1985 and 2004) dominate global cryptocurrency holdings, adoption rates in Indonesia and Oceania are higher among younger demographics compared to Europe and the US.
This trend could be influenced by recent policy changes, including the relaxation of institutional investment restrictions under CoFTRA Regulation (PerBa) Number 9 of 2024.
These adjustments may have contributed to the cryptocurrency rally in September.
Amid ongoing government restructuring efforts initiated by President Prabowo Subianto, who assumed office in October, industry insiders are urging the government to revisit the “dual taxation” policy on crypto.
This review comes as part of broader policy reforms aimed at enhancing the nation’s economic framework.