The Indonesian cryptocurrency market has reached a crucial milestone, exceeding $30 billion in transactions from January to October 2024. This remarkable figure represents a staggering 350% increase compared to the same period last year and marks the highest transaction total since the bull market of 2021.
Data from the Commodity Futures Trading Supervisory Agency indicates that Indonesia recorded about $6.5 billion in cryptocurrency transactions during the same timeframe in 2023, a significant downturn from the estimated $19.4 billion throughout 2022. Since its peak of approximately $54 billion in 2021, the Indonesian cryptocurrency market has encountered extended instability.
The downturn in 2022 was primarily linked to the government's "dual taxation" policy, imposing a 0.1% tax on crypto gains alongside standard capital gains taxes. Nevertheless, recent indicators suggest a recovery in the market, with 2024 transaction totals already eclipsing those of the previous two years combined.
Indonesia holds the third position on Chainalysis' Global Cryptocurrency Adoption Index, underscoring its vital role in the international cryptocurrency arena. The Oceana and Asia regions continue to be prominent areas for cryptocurrency adoption, with seven of the top ten countries in the index situated in this region.
Only India and Nigeria rank higher than Indonesia on this list. Over 60% of cryptocurrency investors in Indonesia are aged under 30. Global trends reveal that millennials, born between 1985 and 2004, predominantly occupy the crypto market, yet the elevated adoption rates in Oceana and Indonesia might be attributed to a younger demographic compared to their European and US counterparts.
Recent policy adjustments in Indonesia, including the easing of restrictions on institutional investment via CoFTRA Regulation (PerBa) Number 9 of 2024, may have facilitated a cryptocurrency rally in September. Insiders have urged the government to reassess the "double tax" on crypto amid ongoing policy revisions following the reorganization efforts initiated by President Prabowo Subiant, who assumed office in October..