Cryptography is the next big thing in Indonesia. According to the Ministry of Trade, Bitcoin (BTC). I grew up More than 14 times from the total of 60 trillion rupiah ($ 4.1 billion) in 2020 to the total of 859 trillion rupiah ($ 59.83 billion) in 2021.
Cryptocurrencies have come to the point where they are becoming more popular than traditional stocks.Jerry Sambuaga, Deputy Trade Minister Said According to the Indonesian Central Securities Depositary, more than 11 million Indonesians bought and sold cryptocurrencies in 2021. In comparison, the total number of portfolio investors is expressed in terms of the number of single investor IDs. Reach In 2021, there will be 7.35 million people.
Still, 11 million crypto investors are still only about 4% of Indonesia’s total population. In other words, there is still plenty of room for growth. The growth of the crypto community in Indonesia is closely linked to some supporting local phenomena, including but not limited to:
- Regulatory support from government agencies
- Improved access to cryptocurrency transactions
- Recruitment from major local tech players
Regulators aim to make things safer
Cryptographic assets are not yet permitted as a means of payment, but companies are welcome to buy and sell crypto as a trading commodity in Indonesia. Since 2019, cryptocurrency transactions in Indonesia have been officially monitored and Regulation By Commodity Futures Trading Regulatory Agency (BAPPEBTI), an organization under the Ministry of Trade.
This governing body is, among other things, responsible for reviewing, documenting and approving companies and commodities that are permitted to trade in Indonesia. As of 2021 Whitelist The number of crypto tokens allowed has reached 229 items, including popular assets such as Bitcoin and Ethereum ()ETH), Polka dot (Dot) And Cardano (ADA).
These items are permitted based on BAPPEBTI’s proprietary review method, taking into account market capitalization rankings, security, development team background checks, blockchain system management, and a development roadmap with verifiable success indicators. ..
In the official statement, the governing body repetition Its main purpose is to provide legal security and protect the interests of Indonesian crypto consumers. BAPPEBTI states:
“It is hoped that the new rules we have published will allow us and the Indonesian cryptocurrency exchanges to work together to ensure that all cryptocurrency transactions are legally regulated and safe for Indonesian investors. I am. “
Another governing body, the Financial Services Authority, Ban Financial services companies such as lending and credit services are repeating BAPPEBTI’s regulation that all crypto exchanges must be specially registered in order to market or promote crypto transactions.
The aforementioned boom in the numbers of both crypto and equity investors in Indonesia is closely linked to the growing popularity of fintech apps such as Valexa and Ajaive, with most of these new investors being beginners. There may be.Tokocrypto, a well-known local cryptocurrency exchange Said It aims to make trading more secure by working with the government to help educate investors on the risks of crypto trading and how to avoid legally suspicious exchanges and assets.
Companies planning to promote the adoption of cryptocurrencies in Indonesia need to build active and active cooperation with the government and ensure compliance with all regulations to earn the trust of local consumers. there is.
17 registered crypto exchanges in Indonesia
Until March 2022 17 companies Registered by BAPPEBTI and allowed to exchange cryptocurrencies in Indonesia, the user base is growing rapidly. Indodax, the market leader, 5 million members In 2022, it was an increase of 104% compared to 2021. Another prominent exchange, Tokocrypto, 2 million members By the end of 2021, an eight-fold increase compared to 2020.
As mentioned earlier, a major contributor to the success of these platforms is a mobile-first strategy with easily accessible apps.Internet penetration rate in Indonesia 73.7% It’s no wonder that 2021 is gaining traction from the country’s mobile-heavy user base.
The Indonesian crypto community is also growing beyond mere exchange. The Indonesia Blockchain Association, a local consortium of blockchain and cryptocurrencies and an advocacy group, has 28 member companies and organizations as of 2022. The association consists of not only exchanges, but also start-ups and technology companies that use blockchain in the ecosystem, and a media platform specializing in cryptography.
Stephen Suhadi, Indonesian crypto network A founding member of the Indonesia Blockchain Association told Cointelegraph: “In the last decade, Indonesian regulators have been able to adapt to technological changes from e-commerce to ride hailing and more recently to P2P. [peer-to-peer] lending. Indonesia already has well-defined rules for exchanges and crypto trading. Over the last 24 months, regulatory agencies have taken more aggressive steps against digital assets. This will help to surge Bitcoin and cryptocurrencies in Indonesia. “
More supply means more demand, and as more players enter the country, stages are set to further increase the popularity of crypto.
Local tech leaders open their arms and welcome crypto
In December 2021, the cryptocurrency exchange Binance announced a joint venture with a consortium led by MDI Ventures to develop a new digital asset exchange in Indonesia.
MDI is the $ 830 million venture capital arm of Telkom Indonesia, Indonesia’s largest telecommunications company. MDI portfolio There are several well-known companies in Indonesia, such as financial technology leaders Kredivo and KoinWorks.
Changpeng Zhao, Founder and CEO of Binance, expressed his confidence and purpose in Indonesia’s cryptocurrency. State“Due to the rapid adoption of technology and strong economic potential, Indonesia has the potential to become one of the major centers of Southeast Asia’s blockchain and crypto ecosystem.”
This sentiment was repeated by MDI CEO Donald Wihardja. Said“Cryptocurrencies, crypto assets, and the underlying technology, blockchain, present an unquestionably important part of future financial and other digital infrastructure.”
It is worth paying attention to this partnership in the future, but at this point it can be seen as an indication that cryptocurrencies are no longer a niche market in Indonesia. More mainstream players have begun to move to it. This could mean more resources and momentum to increase recruitment.
What’s next to Indonesia?
Cryptocurrencies and blockchains can only be expected to grow after 2022, as the volume of transactions, the number of traders and the number of exchanges increase in recent years. Non-fungible tokens (NFTs) have recently been in the limelight in Indonesia after news about computer science student Ghozali was reported. Earn over $ 1 million in selling NFT selfies At OpenSea. With Indonesia’s fast-growing crypto community and already vibrant art scene, NFTs may be the latest chapter in Indonesia’s crypto journey-in any case, it’s an emerging market to watch out for.
Report by Diaz Praditya.