Indonesian Cryptocurrency Market Surpasses $30 Billion In 2024

According to Cointelegraph, the Indonesian cryptocurrency market has achieved a significant milestone, surpassing $30 billion in transactions from January to October 2024. This marks a remarkable 350% increase compared to the same period in the previous year and represents the highest transaction total since the 2021 bull market. Data from the Commodity Futures Trading Supervisory Agency reveals that Indonesia recorded approximately $6.5 billion in cryptocurrency transactions during the same period in 2023, a substantial decline from the estimated $19.4 billion throughout 2022. The Indonesian cryptocurrency market has faced extended turbulence since its peak of approximately $54 billion in 2021. The decline in 2022 was largely attributed to the government's "dual taxation" policy, which imposed a 0.1% tax on crypto gains in addition to standard gains taxes. Despite these challenges, recent indicators suggest a recovery in the market, with 2024 transaction totals already surpassing those of the previous two years combined. Indonesia ranks third on Chainalysis' Global Cryptocurrency Adoption Index, highlighting its significant role in the global cryptocurrency landscape. The Oceana and Asia regions, including Indonesia, remain top areas for cryptocurrency adoption, with seven of the top ten countries in the index located in this region. Only India and Nigeria rank higher than Indonesia on the list. As reported by Cointelegraph, over 60% of cryptocurrency investors in Indonesia are under the age of 30. While global trends indicate that millennials, typically born between 1985 and 2004, dominate the crypto market, the higher adoption rates in Oceana and Indonesia may be due to a younger demographic compared to European and US markets. Recent policy changes in Indonesia, such as the relaxation of restrictions on institutional investment through CoFTRA Regulation (PerBa) Number 9 of 2024, may have contributed to a cryptocurrency rally in September. Insiders have urged the government to reconsider the "double tax" on crypto amid ongoing policy revisions following the reorganization efforts initiated by President Prabowo Subiant, who took office in October.