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Indonesia Makes Bold Move on Crypto Adoption With Opening of National Exchange

2 mins
Updated by Michael Washburn
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In Brief

  • Indonesia has launched a national crypto asset exchange to create a "fair and just" trading environment, prioritizing investor protection.
  • The exchange became operational as of July 17, after months of promises, and an official announcement came three days later.
  • At present Indonesia ranks 20th globally for crypto adoption, with the most popular digital assets being USDT, BTC, ETH, and XRP.
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After months of discussion, the government of Indonesia launched a national crypto asset exchange to “create a fair and just trading ecosystem for crypto assetsand better safeguard investors.

The exchange has been operational since July 17, according to a July 20 government announcement. Didid Noordiatmoko, the head of the country’s Commodity Futures Trading Regulatory Agency, said in a statement: 

“The establishment of the exchange, clearing, and crypto asset storage place management is proof of the government’s presence in efforts to create a fair and just crypto asset trading ecosystem to ensure legal certainty and prioritize protection for the public as customers.”

However, Noordiatmoko emphasized the volatility of cryptocurrencies and urged Indonesians to be safe with trading. The exchange aims to function much like the New York Stock Exchange, where the public can trade assets in a safe, regulated framework.

According to the official statement, there are currently 17.54 million digital asset customers in the country. That’s about 6.4% of the country’s 273.8 million people.

Indonesia Ranked 20th for Crypto Adoption in 2022

Value of cryptocurrency transactions in Indonesia from 2020 to June 2022.
Value of cryptocurrency transactions in Indonesia from 2020 to June 2022. Source: Statistica

Indonesia’s approach to crypto assets is relatively uncommon for such a large economy. Allowing them as investments but prohibiting them as a payment method.

By some measures, the Southeast Asian country is one the most conservative in the world, and hasn’t always been at the cutting edge of technology. According to the Global Innovation Index, in 2022, Indonesia ranked only ranked 75th out of 132 countries surveyed.

The Jakarta government predicts that Indonesia’s economy could gain as much $2.8 trillion by 2040 through technology adoption, so there’s a lot at stake.

However, the country has bucked its own trend when it comes to crypto. It currently ranks 20th in the world for adoption, beating out much “tech-friendlier” nations.

According to the government release, the most traded digital assets were Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). A clear sign that many want to use cryptocurrency to take advantage of the strength of the US dollar.

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Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.
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