Cryptocurrency in Indonesia

A little fun fact, did you know that more than half of cryptocurrency investors and traders in Indonesia are women? Who said crypto or investing is a “boy’s thing”? 

Bitcoin and other cryptocurrencies were legalized in 2018 by the Indonesian Ministry of Trade. Regulations on crypto started to be arranged around 2019 up to this date. Slowly but surely, Indonesia will be a huge investor and user of cryptocurrency. Especially during the pandemic, more Indonesian people gained interest in investments, whether cryptocurrency or stocks. Plenty of cryptos and stock investment and trading apps were created during the pandemic until this date. According to the Ministry of Trade of Indonesia, transactions for currencies like Bitcoin (BTC) grew to 859 trillion rupiahs (59.83 billion dollars) in 2021.

Although, the usage of Bitcoin and other cryptocurrencies isn’t as advanced as how it is in other countries like the US. While many companies like Gucci accept Bitcoin and even Dogecoin as payment, there is still little to none of those in Indonesia. But maybe sooner or later, Indonesia could legalize payments using cryptocurrency with the immense growth of cryptocurrency. According to a 2020 report by Indonesia’s Block Chain Association (Asosiasi Blockchain Indonesia), “Indonesia has outrun the world in digital adoption. It has the highest score of digital adoption growth in 2014-2017 with 99%, outrunning other countries, including India, South Korea, the UK, and the US.” in addition, 9 out of 10 Indonesian use digital wallets for payment (e-commerce of offline shopping).   

Indonesian celebrities and governmental figures are also jumping on to the trend. Very recently, this year, Anang Hermansyah created his crypto token called “ASIX.” The token can be used for his Play to Earn games, NFTs, and investments. The token had some controversies due to its suspicions but was recently legalized and verified by the Indonesian government and was viral among celebrities. Another viral moment is by Syahrini, an Indonesian singer who released her NFT in 2021 and was sold out for a total of 5,12 million rupiahs (355 BUSD). Jokowi Dodo, the Indonesian president himself, embraces technological advances like crypto, AI, and IoT. He wants everyone in the government and citizens to be updated on current technological developments and, of course, contribute to the evolutions. 

Indonesia’s journey in the realm of blockchain still has a long way to go. According to multiple sources, only about 4% of Indonesian users (around 11 million people) invest in crypto; imagine 100%!

Cryptocurrency is Haram?

As most of us probably know, Indonesia is one of or not the largest population of Muslims in the world. On the 11th of November 2021, Indonesia’s National Ulema Council (Majelis Ulama Indonesia (MUI)) came out and deemed cryptocurrency to be haram (forbidden to Islamic law). Indonesia is a democratic country and does not use any Islamic rules and beliefs in its laws, but the religion is highly influential. Hence, plenty of people try to abuse religion for their good.

According to MUI’s site, cryptocurrency is considered to contain gharar, and dharar, and is contrary to Law (UU) Number 7 of 2011 and Indonesian Bank Regulation Number 17 of 2015, making any crypto investments haram. Another factor why they thought cryptocurrency is haram is the nature of the investment. They believe investing in crypto is like gambling because people invest without knowing the actual value of whatever they are investing in.

There is no legitimate proof of whether crypto investments are haram or not. “buying Bitcoin is just like buying land or gold, but in a digital form which was protected by ‘mathematically impenetrable encryption’,” Ainun Najib, an Indonesian Nahdlatul Ulama (NU) member said to ABC News. Regardless of the controversy, to this date, crypto investments are legal in Indonesia regardless of religion.

As of 2022, The Commodity Futures Trading Regulatory Agency in Indonesia, also known as Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI), approved 229 crypto assets for trading. Here are some (complete list here):

BitcoinEthereumTetherAvalancheRippleBinanceDogecoinPolkadotCosmosDecentraland

Conclusion

Bitcoin and 228 other cryptocurrencies are legal and can be used for investments in Indonesia. Although, payments using cryptocurrency are currently illegal in Indonesia. Despite so, the crypto and blockchain community in Indonesia is growing, and the country has the possibility of being one of the biggest crypto adaptors in Asia. Jokowi Dodo, Indonesia’s current president, embraces crypto and other technological advances like AI. He even encourages Indonesian citizens (especially young people) to be tech-savvy and learn everything about the digital industry. The future and growth of cryptocurrency in Indonesia are bright.

Is there any Bitcoin ATM in Indonesia?

Yes! Indonesia recently had its first Bitcoin ATMs though it’s not popularized yet.

Is Binance available in Indonesia?

Yes! Binance is widely used in Indonesia.

Is blockchain available in Indonesia?

Yes! 

How to cash out Bitcoin in Indonesia?

Just like in other countries, you can cash out Bitcoin by using cryptocurrency platforms like Binance, using Bitcoin ATMs, or a third-party broker.