Indonesia has established a clear regulatory framework for cryptocurrency assets, officially recognizing them as commodities rather than legal tender. While crypto cannot be used as a payment method, the Indonesian government continues to refine its regulatory approach to support investor protection, market transparency, and financial innovation. This article outlines the key regulations governing cryptocurrency in Indonesia, including taxation policies, approved crypto assets, exchange licensing requirements, and the transition of oversight under the Financial Sector Technology Innovation Law (UU PPSK).
Cryptocurrency Taxation in Indonesia
As of May 1, 2022, Indonesia’s Directorate General of Taxes, in coordination with the Ministry of Finance (Kemenkeu), implemented formal tax regulations on cryptocurrency transactions. These rules require crypto exchanges—officially known as physical crypto asset traders—to collect and remit taxes on behalf of users.
Two types of taxes apply:
- Value-Added Tax (VAT): 0.11%
- Income Tax (PPh): 0.1%
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The distinction between VAT and income tax depends on the transaction type:
- Rupiah to crypto: Subject to VAT (0.11%)
- Crypto to Rupiah: Subject to income tax (0.1%)
This structured taxation system marks a significant step in formalizing the crypto economy in Indonesia. It reflects growing governmental recognition of digital assets as legitimate financial instruments within the broader commodities market.
While these rates are relatively low compared to those in several European countries, they ensure compliance and contribute to national revenue. Transparency in tax collection also enhances trust among retail investors and institutional participants alike.
383 Approved Cryptocurrencies in Indonesia
On August 8, 2022, the Commodity Futures Trading Regulatory Agency (Bappebti) issued Regulation No. 11 of 2022, replacing previous guidelines and establishing a definitive list of legally tradable crypto assets in Indonesia.
The regulation, titled “Determination of the List of Cryptocurrency Assets Traded on the Physical Cryptocurrency Market,” introduces five critical updates designed to strengthen market integrity and investor protection:
- Prohibition of trading any cryptocurrency not listed by Bappebti
- Introduction of technical assessment criteria for determining which cryptocurrencies qualify for listing
- Clear procedures for periodic review and potential delisting of approved assets
- Enforcement of penalties for non-compliant platforms
- Establishment of an official evaluation team responsible for assessing crypto asset eligibility
These measures ensure that only vetted, transparent, and fundamentally sound digital assets enter the Indonesian market.
The regulation includes an annex detailing a comprehensive evaluation framework across six pages, covering aspects such as technology reliability, market liquidity, security protocols, and project legitimacy.
Currently, 383 cryptocurrencies are officially approved for trading in Indonesia under Bappebti’s supervision. This list includes major names like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and various stablecoins, alongside select altcoins that meet stringent evaluation standards.
Investors are strongly advised to trade only within this approved list to avoid exposure to scams, volatility risks, or unregulated offerings.
Licensing Requirements for Crypto Exchanges
In Indonesian regulatory language, licensed crypto trading platforms are referred to as Physical Crypto Asset Traders (Pedagang Fisik Aset Kripto). These entities act as intermediaries between users and the crypto market and must meet strict operational and financial criteria set by Bappebti.
To obtain a license, applicants must fulfill several key requirements:
- Be a registered limited liability company (PT)
- Maintain minimum capital and equity thresholds
- Employ qualified personnel in compliance, risk management, and cybersecurity
- Implement robust anti-money laundering (AML) and know-your-customer (KYC) systems
- Provide secure digital infrastructure with audit trails
These standards aim to prevent fraud, ensure platform stability, and protect user funds.
As of December 28, 2022, 25 crypto exchanges had successfully met Bappebti’s licensing criteria and were authorized to operate legally in Indonesia. Platforms failing to comply face suspension or closure.
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This licensing regime fosters a safer environment for both new and experienced investors navigating the rapidly evolving crypto landscape.
Transition Under the PPSK Law (UU PPSK)
A major shift in Indonesia’s regulatory architecture came with the passage of Law No. 4 of 2023 on Financial Sector Technology Innovation (UU PPSK) in December 2022. This law formally classifies cryptocurrencies as part of Financial Technology Innovation (ITSK) and transfers regulatory authority from Bappebti to the Financial Services Authority (Otoritas Jasa Keuangan / OJK).
However, this transition is not immediate. The law provides for a two-year transitional period, allowing time for:
- Harmonization of regulations between Bappebti and OJK
- Institutional capacity building within OJK
- Adjustment by existing exchanges and market participants
During this phase, Bappebti retains operational oversight while working closely with OJK to ensure a seamless handover.
One key question remains: Will cryptocurrencies continue to be treated as commodities, or will they eventually be reclassified as digital currency under OJK’s broader financial mandate?
While no official reclassification has occurred yet, the move signals Indonesia’s intent to integrate digital assets into its mainstream financial ecosystem—with stronger consumer protections, clearer legal frameworks, and enhanced market surveillance.
Frequently Asked Questions (FAQ)
Q: Is cryptocurrency legal in Indonesia?
A: Yes, cryptocurrency is legal in Indonesia but only as a commodity, not as legal tender. It can be traded on licensed platforms but cannot be used for everyday payments.
Q: What happens if I trade unlisted cryptocurrencies?
A: Trading unapproved crypto assets violates Bappebti regulations. Users may face risks such as lack of dispute resolution, exposure to scams, and potential legal consequences if involved in illicit activities.
Q: Who collects crypto taxes in Indonesia?
A: Licensed crypto exchanges are responsible for collecting VAT (0.11%) when users buy crypto with Rupiah and income tax (0.1%) when users sell crypto for Rupiah.
Q: Will OJK allow crypto as payment in the future?
A: As of now, there are no official plans to make crypto a legal payment method. The central bank promotes the use of digital rupiah (e-Rupiah) instead.
Q: How often does Bappebti update the list of approved cryptocurrencies?
A: The list is reviewed periodically based on technical assessments. Additions or removals depend on market conditions, project viability, and compliance status.
Q: Are foreign crypto exchanges legal in Indonesia?
A: No. Only exchanges registered with and licensed by Bappebti (and eventually OJK) can legally serve Indonesian users. Accessing offshore platforms may expose users to regulatory and security risks.
Final Thoughts
Indonesia’s approach to cryptocurrency regulation demonstrates a balanced focus on innovation and risk management. By defining crypto as a commodity, imposing transparent taxation, maintaining a curated list of 383 approved assets, licensing trusted exchanges, and preparing for OJK-led oversight under UU PPSK, the country is building a resilient digital asset ecosystem.
For investors, the message is clear: stick to regulated platforms and approved assets. As the transition to OJK supervision progresses over the next two years, further refinements in policy and investor safeguards are expected.
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As global interest in digital finance grows, Indonesia’s structured yet adaptive framework positions it as a regional leader in responsible crypto adoption—prioritizing security, transparency, and long-term sustainability.