Indonesia, renowned for its rapid adoption of cryptocurrency, has achieved a significant milestone in 2024. The Commodity Futures Trading Supervisory Agency (Bappebti) reported that crypto transactions in the country reached over 475 trillion Indonesian rupiah, or $30 billion, as of October. This marks a staggering 352% increase compared to $6.5 billion in the same period last year.
Accelerated Growth in the Crypto Sector
The surge in transactions has outpaced the previous two years, which recorded $19.4 billion in 2022 and $6.5 billion in 2023. Despite this impressive growth, the market has not yet reached its peak of $54 billion in 2021, a year characterized by a bullish cryptocurrency market.
Bappebti Head Kasan said, “This proves that crypto asset trading is one of the trading options that is in demand by the public,” Kasan said in a statement on November 28.
October: A Turning Point for Crypto
October 2024 played a pivotal role in the crypto market’s resurgence, both locally and globally. According to Wan Iqbal, Chief Marketing Officer of Tokocrypto, the month was marked by positive macroeconomic developments, including lower interest rates by the U.S. Federal Reserve and economic easing measures from China. These factors contributed to market stability and optimism among investors.
A significant portion of Indonesia’s crypto investors are young, with over 60% aged between 18 and 30, according to Bappebti and local crypto platforms. Specifically, 26.9% of users fall in the 18 to 24 age group, while 35.1% are aged 25 to 30. This youthful demographic highlights the growing popularity of cryptocurrency among tech-savvy and digitally engaged individuals in the country.
Regulatory Framework and Challenges
Indonesia officially recognizes cryptocurrencies as commodities, allowing them to be traded within a regulatory framework established by Bappebti. This recognition has helped build trust in the market and attract more participants.
However, challenges persist, including a dual tax system on crypto transactions, which some users perceive as a barrier to growth.
A Global Leader in Crypto Adoption
Indonesia’s achievements in the crypto space are reflected in its consistent ranking on the Chainalysis Global Crypto Adoption Index. Alongside countries like India and Nigeria, Indonesia is one of the world’s fastest crypto adopters and has maintained a top-20 position for three consecutive years.
The remarkable growth in Indonesia’s cryptocurrency market underscores its potential as a key player in the global crypto ecosystem. While the market has yet to match its 2021 highs, the current trajectory suggests a strong and resilient foundation.
With continued regulatory support and growing investor interest, Indonesia is poised to remain a leader in cryptocurrency adoption.