As a researcher with a focus on digital finance and demographics, I find the trend of crypto adoption among younger generations, particularly evident in Indonesia, incredibly intriguing. Having spent considerable time studying financial behaviors across various age groups, it’s fascinating to witness the rapid growth and acceptance of cryptocurrencies by the youth worldwide.
Based on data published by Indonesia’s commodities regulator in September, most cryptocurrency users in the country are typically 30 years old or younger.
According to data from the Commodity Futures Trading Regulatory Agency (Bappebti) and local cryptocurrency platforms in Indonesia, a large proportion – over 60% – of crypto investors in the country fall within the age range of 18 to 30 years old. Specifically, the September report indicates that about one-quarter (26.9%) of these investors are between 18 and 24 years old, while roughly a third (35.1%) are aged 25 to 30.
Going beyond just demographic data, Bappebti recently disclosed that the value of crypto asset transactions amounted to approximately 33.67 trillion Indonesian rupiahs, which is equivalent to around $2.1 billion. In the month of September alone, the number of crypto users in Indonesia climbed to a staggering 21.27 million.
The agency also noted that Indonesians primarily traded Tether’s USDt (USDT), Ether (ETH), Bitcoin (BTC), Pepe (PEPE) and Solana (SOL).
Crypto regulations in Indonesia
In Indonesia, crypto assets are officially recognized as commodities, which means Bappebti has established a structured framework for crypto trading. However, crypto users in Indonesia face challenges from the country’s dual tax system for crypto transactions.
2022 saw Indonesians persisting in their utilization of digital assets, even amidst the double taxation system. This system includes a 0.11% Value-Added Tax (VAT) and a 0.1% Capital Gains Tax (CGT) levied on crypto transactions within Indonesia.
Instead of the original text, consider this: Bappebti, Indonesia’s Business Competition Supervisory Commission, has recommended reevaluating the taxation policies for cryptocurrencies. On March 2nd, Bappebti officials proposed a review of the tax structure in Indonesia. Tirta Karma Senjaya, head of Market Development and Development at Bappebti, stated that cryptocurrency could become a vital component of Indonesia’s economy in the near future.
As a forward-thinking crypto investor, I firmly believe that digital currencies will eventually integrate with the traditional financial system. Consequently, I anticipate that the Directorate General of Taxes will be compelled to assess and establish appropriate taxation policies for these assets in due course.
Crypto attracts the younger generation
The demographics of crypto users in Indonesia reflect a broader trend worldwide. In the United States, a survey done by Policygenius showed that 20% of Gen Z adults (ages 18–26) and 22% of millennials (ages 27–42) are more likely to invest in crypto assets than the older generation.
2023 research conducted by Bitget, involving 255,000 participants from 26 nations, revealed that approximately half (46%) of millennials in key economies globally possess cryptocurrency.
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2024-10-29 11:26