Indonesia
Retail_Trading_Status
- Analysis ID
- #688
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- 2025-12-12 04:24
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- 16bd20c9...
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Executive Summary
Cryptocurrency in Indonesia is legal and heavily regulated, recently undergoing a major oversight transition from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) as of January 2025. While retail trading is permitted on licensed exchanges and crypto is formally classified as a 'Digital Financial Asset,' the use of cryptocurrency as a payment instrument for goods and services remains strictly banned by Bank Indonesia. The regulatory framework is comprehensive, featuring a national crypto bourse (CFX), specific tax regimes (VAT and Income Tax), and strict AML/KYC requirements for all service providers.
Key Pillars
Financial Services Authority (OJK): New primary regulator for 'Digital Financial Assets' effective January 2025 (taking over from Bappebti).
Commodity Futures Trading Regulatory Agency (Bappebti): Former primary regulator; licenses issued prior to 2025 remain valid during the transition period.
Bank Indonesia (BI): Enforces the ban on crypto payments and ensures the Rupiah remains the sole legal tender.
CFX (PT Bursa Komoditi Nusantara): The government-backed National Crypto Asset Bourse that monitors all transactions for tax and surveillance purposes.
Taxation: Specific VAT and Income Tax rates applied to all crypto transactions (PMK 68).
Landmark Laws
Law on Development and Strengthening of the Financial Sector (Omnibus Law) (UU No. 4 of 2023 (UU P2SK)) - Enacted: 2023-01-12
- A comprehensive omnibus law that reclassified crypto assets from 'commodities' to 'Digital Financial Assets' (DFA) and mandated the transfer of regulatory oversight from Bappebti to the OJK.
- Source
Regulation on Implementation of Trading in Digital Financial Assets (OJK Regulation (POJK) No. 27 of 2024) - Enacted: 2024-12-10
- The implementing regulation for the OJK's oversight, effective January 10, 2025. It establishes rules for digital financial asset markets, clearing houses, and custodians.
Regulation on VAT and Income Tax on Crypto Asset Trading Transactions (PMK No. 68/PMK.03/2022) - Enacted: 2022-03-30
- Imposes a final income tax (PPh) of 0.1% and VAT (PPN) of 0.11% on crypto transactions on registered exchanges (rates double for unregistered platforms).
- Source
Guidelines for the Implementation of Physical Crypto Asset Trading (Bappebti Regulation No. 8 of 2021 (amended by No. 13 of 2022)) - Enacted: 2021-10-29
- The foundational framework that established the licensing regime for 'Physical Crypto Asset Traders' (PFAK) and the requirement for a national bourse.
- Source
Considerations
Strict Payment Ban: Using crypto to pay for coffee, groceries, or services is illegal; it is solely an investment asset.
Dual Licensing Status: Exchanges are often categorized as 'Prospective' (CPFAK) or fully licensed 'Physical Traders' (PFAK); only a few have achieved full PFAK status.
National Bourse Integration: All licensed exchanges must be members of the CFX (National Bourse), which acts as a central clearing house and data repository.
Tax Collection: Taxes are automatically deducted at the source by the exchange.
Travel Rule: Indonesia enforces the FATF Travel Rule for transactions exceeding USD 1,000.
Notes
The regulatory status is currently in a unique 'handover' phase (Jan 2025). While the rules are clear, the operational shift from Bappebti to OJK is a massive administrative undertaking. Users should expect continuity, but exchanges face a heavy compliance burden to adapt to the new 'Financial Institution' standards.
Remaining Uncertainties
- How the OJK will handle the specific re-licensing process for existing 'Prospective' (CPFAK) traders under the new DFA framework.
- Whether the OJK will introduce new restrictions on the types of tokens allowed (the 'whitelist') compared to the previous Bappebti list.
- The timeline for the full integration of the National Bourse (CFX) with the new OJK reporting standards.
Detailed Explanation
Detailed Explanation
Cryptocurrency is legal and regulated in Indonesia, operating under a comprehensive and evolving regulatory framework. The legal status was formally established by the Law on Development and Strengthening of the Financial Sector (Omnibus Law) (UU No. 4 of 2023), enacted on January 12, 2023. This landmark legislation reclassified crypto assets from commodities to 'Digital Financial Assets' (DFA) and mandated a major transition of regulatory oversight from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK), which became effective in January 2025. The OJK now serves as the primary regulator, with its implementing rules detailed in OJK Regulation (POJK) No. 27 of 2024, enacted on December 10, 2024. Bappebti, the former regulator, remains relevant as licenses issued prior to the transition, under its foundational Bappebti Regulation No. 8 of 2021, remain valid during the handover period. A central feature of the Indonesian system is the government-backed National Crypto Asset Bourse, CFX (PT Bursa Komoditi Nusantara), which monitors all transactions for tax and surveillance purposes, and all licensed exchanges must be members. All crypto transactions are subject to specific taxation under PMK No. 68/PMK.03/2022, enacted on March 30, 2022, which imposes a final income tax of 0.1% and a VAT of 0.11% on transactions conducted on registered exchanges, with rates doubling for unregistered platforms. Service providers must also adhere to strict AML/KYC requirements and enforce the FATF Travel Rule for transactions exceeding USD 1,000. Despite this regulated environment for investment, a critical restriction remains: the use of cryptocurrency as a payment instrument for goods and services is strictly banned by Bank Indonesia (BI), which enforces the Rupiah as the sole legal tender. The regulatory landscape is currently in a unique transition phase, where the operational shift from Bappebti to OJK represents a significant administrative undertaking for exchanges, which must adapt to new financial institution standards while ensuring continuity for users.
Summary Points
I. Regulatory Status
* Legal and heavily regulated.
* Formally classified as a 'Digital Financial Asset' (DFA) for investment, not as a payment instrument.
* Regulatory oversight officially transitioned from Bappebti to the Financial Services Authority (OJK) as of January 2025.
II. Key Regulatory Bodies
* Financial Services Authority (OJK): The new primary regulator for 'Digital Financial Assets' effective January 2025.
* Commodity Futures Trading Regulatory Agency (Bappebti): The former primary regulator; licenses issued prior to 2025 remain valid during the transition.
* Bank Indonesia (BI): The central bank that enforces the ban on using crypto for payments and ensures the Rupiah remains the sole legal tender.
* CFX (PT Bursa Komoditi Nusantara): The government-backed National Crypto Asset Bourse that monitors all transactions for tax and surveillance purposes; all licensed exchanges must be members.
III. Important Legislation
* Law on Development and Strengthening of the Financial Sector (Omnibus Law) (UU No. 4 of 2023 (UU P2SK)): Enacted January 12, 2023. Reclassified crypto from commodities to 'Digital Financial Assets' and mandated the regulatory transfer from Bappebti to OJK.
* Regulation on Implementation of Trading in Digital Financial Assets (OJK Regulation (POJK) No. 27 of 2024): Enacted December 10, 2024. The implementing regulation for OJK's oversight, effective January 10, 2025.
* Regulation on VAT and Income Tax on Crypto Asset Trading Transactions (PMK No. 68/PMK.03/2022): Enacted March 30, 2022. Imposes a final income tax (PPh) of 0.1% and VAT (PPN) of 0.11% on transactions on registered exchanges (rates double for unregistered platforms).
* Guidelines for the Implementation of Physical Crypto Asset Trading (Bappebti Regulation No. 8 of 2021, amended by No. 13 of 2022): Enacted October 29, 2021. The foundational framework that established the licensing regime for 'Physical Crypto Asset Traders' (PFAK) and the national bourse requirement.
IV. Compliance Requirements
* All service providers (exchanges) must be licensed, either as 'Prospective' (CPFAK) or fully licensed 'Physical Traders' (PFAK).
* Mandatory membership and integration with the national crypto bourse (CFX).
* Strict AML/KYC procedures are required for all users.
* The FATF Travel Rule must be enforced for transactions exceeding USD 1,000.
* Taxes (VAT and Income Tax) are automatically deducted at the source by the exchange.
V. Notable Restrictions or Limitations
* Strict payment ban: Using cryptocurrency as a payment instrument for goods and services (e.g., coffee, groceries) is illegal.
* Crypto is solely permitted as an investment asset.
* Only a few exchanges have achieved full PFAK (licensed trader) status; many operate under a 'prospective' license.
VI. Recent Developments or Notes
* The regulatory framework is in a unique 'handover' phase as of January 2025, with oversight transitioning from Bappebti to OJK.
* This is a massive administrative undertaking; users should expect continuity, but exchanges face a heavy compliance burden to adapt to new 'Financial Institution' standards under OJK supervision.
Full Analysis Report
Full Analysis Report
Indonesia presents one of the most structured and rapidly evolving regulatory environments for cryptocurrency in Southeast Asia. Historically, crypto was treated strictly as a commodity under the supervision of the Ministry of Trade’s Commodity Futures Trading Regulatory Agency (Bappebti). This framework allowed for the legalization of retail trading and the licensing of over 30 exchanges (including major local players like Indodax, Tokocrypto, and Pintu). However, the regulatory landscape shifted fundamentally with the enactment of the Financial Sector Omnibus Law (UU P2SK) in 2023, which reclassified crypto assets as 'Digital Financial Assets' and mandated a transfer of supervisory authority to the Financial Services Authority (OJK).
As of January 10, 2025, this transition is officially in effect under OJK Regulation No. 27 of 2024. The move to OJK supervision signals the government's intent to treat crypto with the same rigor as traditional financial securities. The new framework maintains the validity of existing Bappebti licenses during a transition period but introduces stricter capital requirements, consumer protection norms, and governance standards. A unique feature of the Indonesian market is the requirement for a 'National Crypto Asset Bourse' (CFX), similar to a stock exchange, which was launched in 2023. All private exchanges must route transactions through this bourse to ensure transparency and tax compliance.
Despite the robust trading infrastructure, the distinction between 'asset' and 'currency' is rigidly enforced. Bank Indonesia (the central bank) has repeatedly issued circulars and public warnings that cryptocurrencies are not legal tender. While banks are permitted to facilitate fiat transfers to and from licensed crypto exchanges (typically via Virtual Accounts), they are prohibited from processing payments where crypto is the medium of exchange for goods or services. This 'asset-only' approach allows the government to capture tax revenue—via a specific 0.1% Income Tax and 0.11% VAT regime—without ceding monetary sovereignty.
The market is characterized by a high level of retail adoption, with millions of registered investors. The government's approach has been to embrace the industry for its economic potential while containing its systemic risks. The recent transition to OJK is expected to further institutionalize the sector, potentially opening the door for more complex financial products like crypto-derivatives or ETFs in the future, provided they comply with the new 'Digital Financial Asset' framework.
Indonesia presents one of the most structured and rapidly evolving regulatory environments for cryptocurrency in Southeast Asia. Historically, crypto was treated strictly as a commodity under the supervision of the Ministry of Trade’s Commodity Futures Trading Regulatory Agency (Bappebti). This framework allowed for the legalization of retail trading and the licensing of over 30 exchanges (including major local players like Indodax, Tokocrypto, and Pintu). However, the regulatory landscape shifted fundamentally with the enactment of the Financial Sector Omnibus Law (UU P2SK) in 2023, which reclassified crypto assets as 'Digital Financial Assets' and mandated a transfer of supervisory authority to the Financial Services Authority (OJK). As of January 10, 2025, this transition is officially in effect under OJK Regulation No. 27 of 2024. The move to OJK supervision signals the government's intent to treat crypto with the same rigor as traditional financial securities. The new framework maintains the validity of existing Bappebti licenses during a transition period but introduces stricter capital requirements, consumer protection norms, and governance standards. A unique feature of the Indonesian market is the requirement for a 'National Crypto Asset Bourse' (CFX), similar to a stock exchange, which was launched in 2023. All private exchanges must route transactions through this bourse to ensure transparency and tax compliance. Despite the robust trading infrastructure, the distinction between 'asset' and 'currency' is rigidly enforced. Bank Indonesia (the central bank) has repeatedly issued circulars and public warnings that cryptocurrencies are not legal tender. While banks are permitted to facilitate fiat transfers to and from licensed crypto exchanges (typically via Virtual Accounts), they are prohibited from processing payments where crypto is the medium of exchange for goods or services. This 'asset-only' approach allows the government to capture tax revenue—via a specific 0.1% Income Tax and 0.11% VAT regime—without ceding monetary sovereignty. The market is characterized by a high level of retail adoption, with millions of registered investors. The government's approach has been to embrace the industry for its economic potential while containing its systemic risks. The recent transition to OJK is expected to further institutionalize the sector, potentially opening the door for more complex financial products like crypto-derivatives or ETFs in the future, provided they comply with the new 'Digital Financial Asset' framework.
Source Evidence
Primary and secondary sources cited in this analysis
"On 10 January 2025, Indonesia's Financial Services Authority (OJK) Regulation No. 27 of 2024... came into force. It transitions the regulatory and supervisory duties... from Bappebti to OJK."
"Daftar Calon Pedagang Fisik Aset Kripto yang Terdaftar di Bappebti"
"Income from cryptoasset trading is subject to Article 22 Income Tax at a rate of 0.1% of the transaction value."
"Starting January 12, 2025, Indonesia's cryptocurrency market will transition to a new regulatory regime... from Bappebti to OJK."
"OJK Regulation No. 27 sets out the framework for trading in DFA and includes provisions relating to the institutions, licensing, governance..."
Web Sources (10)
Sources discovered via web search grounding
Search queries used (5)
- Indonesia crypto tax PMK 68/PMK.03/2022 details
- Bank Indonesia crypto payment ban regulation
- Indonesia crypto regulation Bappebti OJK transition 2024 2025
- Bappebti licensed crypto exchanges list 2024
- UU P2SK crypto assets explanation
https://www.lightspark.com/knowledge/is-crypto-legal-in-indonesia
https://www.allenandgledhill.com/publication/articles/29790/financial-services-authority-sets-out-framework-for-trading-of-digital-financial-assets-in-new-regulation
https://www.bagusenrico.com.bepartners.co.id/legal-insight/regulatory-implications-of-ojks-oversight-on-digital-financial-assets-including-crypto-assets-in-indonesia
https://nusantaralegal.com/understanding-the-transition-of-supervisory-authority-over-digital-financial-assets-in-indonesia-from-bappebti-to-ojk/
https://www.binance.com/en/square/post/7597327260002
https://ssek.com/blog/from-bappebti-to-ojk-indonesias-crypto-regulation-just-changed/
https://www.abnrlaw.com/news/indonesia-starting-off-the-year-with-a-new-era-for-crypto-trading-under-ojks-helm
https://indonesiacrypto.network/blog/indonesias-crypto-market-enters-a-new-era-in-2025
https://muc.co.id/en/article/indonesia-officially-imposes-tax-on-crypto-asset-per-1-may-2022
https://pajak.go.id/index.php/en/artikel/interested-crypto-assets-here-are-tax-terminology