The implementation of cryptocurrencies and blockchain technology has now become a global phenomenon, and Indonesia is set to become a major player in the crypto space in Asia. If you are looking to invest in and trade cryptocurrency, or require a cryptocurrency account to do business in Indonesia, you need to know a few key things, which we will cover in this article.
Cryptocurrency in Indonesia is absolutely legal and available for purchase, but inside the country according to the law you cannot pay for any services or goods with it, because since July 2015, according to the regulation of the central bank of Indonesia, the only payment system is the national currency - the rupiah. The legislation only allows cryptocurrency to be used as an exchange-traded commodity for now, which can be traded on authorized futures exchanges. However, cryptocurrencies are expected to be considered securities after the transition period to the new regulator. We will discuss this in more detail below.
Cryptocurrency in Indonesia is regulated by BAPPEBTI (the Commodity Futures Trading Regulatory Agency). Since January 12, 2023, following the enactment of the Financial Sector Development and Strengthening Law, the authority to regulate crypto assets is being transferred from BAPPEBTI to OJK (the Financial Services Authority), with a transition period of 2 years. Due to this, Indonesia's cryptocurrency regulations are likely to change, but for now, here are the current conditions.
First, you’ll need to register with a brokerage company, app, or exchange and complete the "Know Your Customer" (KYC) process. KYC verification is an important step designed to prevent money laundering and terrorism financing.
In addition, you will need:
1. An identity card (KTP) or another acceptable form of identification for the KYC process
2. A private and secure internet connection, as public Wi-Fi can pose security risks
3. An account with an exchange or brokerage firm authorized for use in Indonesia
4. A mobile phone for verifying your identity via two-factor authentication (2FA)
5. A bank account that you can use to deposit fiat currency (Indonesian rupiah) for purchasing cryptocurrency
6. A crypto wallet for storing crypto assets. Most exchanges offer built-in wallets, but for added security, it’s better to use a "cold" wallet (a physical device that isn’t connected to the internet or other unsecured networks when not in use)
If you have everything mentioned above, you are ready to make your first cryptocurrency purchase in Indonesia.
Most exchange platforms in Indonesia can be found online or through mobile apps available on Google Play Store and Apple App Store.
Register and open an account on an exchange like Binance, Indodax, or Upbit. The registration process is standard (name, email address, acceptance of the platform's terms of use, and privacy policy).
As mentioned earlier, after opening an account, the user must complete the KYC verification. Without completing this step, users will not be able to conduct any transactions. It's not uncommon for verification to fail. Ensure that you don’t already have an existing account on the exchange, provide accurate personal information, and upload only those photos where all details are clear, the face is well visible, without glasses or headgear. KYC data processing usually takes at least one business day.
After verification, deposit funds to purchase cryptocurrency. All registered exchanges in Indonesia accept the local currency, rupiah (IDR). Typically, minimum deposits start from 30,000 to 50,000 rupiah, but some exchanges require a minimum deposit of 500,000 rupiah.
Some deposit methods supported by exchanges:
• Bank transfer
• E-wallets (OVO, GoPay, ShoppePay)
• PPOB (e.g., Alfamart)
• Credit or debit card (only for overseas exchanges)
Please review each method before making a deposit, as some may incur deposit fees.
Once your deposit in rupiah is confirmed, you can purchase cryptocurrency. On most exchanges, the procedure is straightforward. You select the currency you want to buy, enter the amount in Indonesian rupiah (make sure you have enough balance in your fiat wallet), review the purchase and the price, and if you are satisfied with the details, click "Buy." After the transaction is complete, the amount of cryptocurrency you bought will appear in the exchange's built-in wallet. You can then transfer it to an external hot or cold wallet if you wish.
Since May 1, 2022, Indonesia has imposed VAT on cryptocurrency transactions and income tax on capital gains from such investments, both at a rate of 0.1%.
• In July 2023, Bappebti’s head, Didid Noordiatmoko, announced the launch of Indonesia’s official state-backed cryptocurrency exchange. Alongside the exchange, Bappebti also established a clearinghouse. According to authorities, this exchange will become the sole licensed provider of digital asset services. What will happen to other exchanges remains unknown.
• Bank Indonesia has announced trials for the digital rupiah by the end of 2024. The digital rupiah is intended to be used not only as a payment instrument but also as a store of value.
We hope this guide has helped you learn more about the cryptocurrency landscape in Indonesia and that you found it informative. However, if you encounter difficulties registering on an exchange or opening a cryptocurrency account—especially if this is necessary for your business or for starting a business in Indonesia — we at Good Luck Group are ready to assist you with all stages of online company registration and account opening in Indonesia.
