As a researcher who has spent a significant part of my career studying the dynamic world of cryptocurrencies and their global adoption, I find the recent surge in Indonesia’s crypto market particularly intriguing. Having closely followed the Indonesian market since its 2021 high, it’s fascinating to witness this remarkable recovery, especially considering the challenges posed by the “dual taxation” policy.
In the span of January to October 2024, the Indonesian cryptocurrency market recorded over $30 billion in transactions, signifying a staggering 350% growth compared to the same period the previous year. This is the highest total since the 2021 bull market, indicating a significant surge in crypto trading activity.
Reflecting on the data from the Commodity Futures Trading Supervisory Agency, I’ve noticed that my home country, Indonesia, transacted approximately $6.5 billion in cryptocurrencies during the same period in 2023. This figure represents a significant decrease compared to the estimated $19.4 billion traded throughout all of 2022.
Indonesian crypto recovery
The Indonesian cryptocurrency market has faced continuous volatility since reaching an approximate peak of $54 billion in 2021. In 2022, a substantial drop was observed primarily due to the introduction of a “dual taxation” policy by the government, which imposed a 0.1% tax on crypto earnings in addition to regular income taxes.
In contrast to the obstacles faced, current signs suggest a revival in the Indonesian market. The cumulative transactions for 2024 have already surpassed the total from the past two years combined.
In terms of geographical distribution, Indonesia along with the broader Oceania/Asia market leads in global cryptocurrency adoption, according to Chainalysis’ Global Cryptocurrency Adoption Index. Notably, seven out of the top ten countries are from this region. However, India and Nigeria rank higher than Indonesia on this list.
Oceana adoption
According to CryptoMoon’s latest report, approximately 60% of cryptocurrency investors in Indonesia are under 30 years old. While it’s common knowledge that millennials, who are generally defined as people born between 1985 and 2004, own most of the global crypto market, the higher rates of adoption in regions like Oceania and Indonesia might be due to a younger age range compared to European and US markets.
Recent policy changes in Indonesia may have contributed to the September cryptocurrency rally, with the government relaxing restrictions on institutional investment via CoFTRA Regulation (PerBa) Number 9 of 2024.
As a crypto investor, I’ve been closely following the recent developments. It seems that insiders have urged the government to rethink the “double tax” on cryptocurrencies, given the widespread policy adjustments triggered by the new administration taking office in October, led by President Prabowo Subianto.
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2024-11-29 20:14