a regulatory guide for cryptocurrency in indonesia

A Regulatory Guide to Cryptocurrency in Indonesia

  • InCorp Editorial Team
  • 3 July 2025
  • 4 minutes reading time

Cryptocurrency has grown in popularity, and Indonesian regulators are still trying to catch up. Hence, foreign investors interested in this untapped market should be mindful of the present regulatory environment around cryptocurrencies.

This article will summarize the existing regulation regarding the cryptocurrency market in Indonesia.

The Indonesian currency is determined by law, according to Article 23B of the country’s constitution, and the currency legislation of 2011 mandates that nearly all financial transactions in Indonesia be conducted in Rupiah, the country’s only recognized currency. Only International transactions, government spending, and bank deposits are exempt.

The purchase and selling of cryptocurrencies in Indonesia are only authorized for investment reasons or for legally specified crypto assets, according to the country’s legislation. However, the central bank recently underlined that cryptocurrencies are not a valid method of payment. Banks are forbidden to facilitate the use of cryptocurrency as a form of payment.

Indonesia Recognizes Cryptocurrency as a Trading Commodity Only

The Ministry of Trade Regulation No. 99 of 2018 formally authorized crypto asset trading and decreed it lawful. Furthermore, the Indonesian Commodity Futures Trading Supervisory Authority, or Bappebti, published Regulation No. 5 of 2019 to provide a thorough regulatory framework for the crypto-assets future.

According to data from the Blockchain Association of Indonesia, the number of investors has risen by 280% since 2020, from 1.5 million to 4.2 million, with a daily trading volume reaching USD 117.4 million.

These Bappebti Regulations in Indonesia have made significant progress toward building a comprehensive legal framework that will guarantee that the crypto sector thrives in the country, even if it is not yet accepted for payment.

Existing Cryptocurrency Regulations in Indonesia

Key Regulations

  • Bappebti Regulation No. 7 (2020): Bappebti has compiled a list of 229 crypto assets that may be traded lawfully on future exchanges.
  • Bappebti Regulation No. 5 (2019): Bitcoin has been recognized as a commodity and the regulatory standards for cryptocurrency exchanges also has been classified.

Obligations

In addition to the 229 cryptocurrencies that will be traded in Indonesia, Bappebti Regulation No. 7/2020 defines prospective crypto-assets physical traders (calon pedagang fisik aset kripto) and crypto-assets physical traders (pedagang fisik aset kripto) as platforms where customers can buy and sell crypto-assets.

Bappebti additionally establishes the following responsibilities for crypto-asset physical traders in the same regulation:

  • establish standard operating procedures for monitoring and evaluating the crypto-assets exchanged by the trader;
  • the crypto-assets being exchanged by the crypto-assets physical trader are monitored and assessed independently and actively;
  • actively report to Bappebti, the Cryptoassets Futures Exchange, and the Cryptoassets Committee the outcomes of the monitoring and assessment of traded crypto-assets;
  • unilaterally impose limitations on crypto-assets that fail to meet the trader’s risk standards.

Cryptocurrency Indonesia: Requirements for Foreign Investors

Since Indonesia presently lacks a crypto-asset future exchange, the Bappebti registration is temporarily closed. Crypto-asset trading, on the other hand, is expressly regulated to be available to all international investors. An investor must meet the following requirements in order to become a Bappebti certified Crypto-Asset Physical Trader:

  • have at least IDR 50 billion in paid-up capital;
  • retain a minimum of IDR 40 billion in equity;
  • have acquired a PSE accreditation (Electronic System Provider or Penyelenggara Sistem Elektronik) from the Ministry of Communication and IT for their system;
  • having a business strategy in place for the next 24 months, as well as financial projections;
  • Bappebti’s system requirements must be met.

How Can InCorp Help?

Setting up a business in Indonesia can be lucrative, but it also presents several hurdles. InCorp Indonesia (an Ascentium Company) registers your company with the least hassle, while you focus on the core business aspect of your company. We conduct due diligence and market research to rule out any loopholes. We also provide legal consultation and ensure that you stay on top of legal compliances, along with helping you with the acquisition of business licenses.

To know more about how InCorp’s solutions can help you make investments in Indonesia, please fill out the form below or talk to an expert on our chatbot.

Verified by

Hotdo Nauli

Senior Legal & Delivery Manager at InCorp Indonesia

Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). 

Frequently Asked Questions

    In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:

    • Business Identification Number (NIB)

      • Low-risk businesses needing only an NIB

    • Standard Certification
    • Standard Certification is necessary for medium-low and medium-high-risk businesses
    • Licenses/Permits

    High-risk businesses require licenses/permits
    Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).

    Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation.

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.

      • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

    A foreign-owned company (PT PMA) in Indonesia is a popular choice among foreigners to set up a business. Foreign investors must check Indonesia’s Positive Investment List to see which businesses are open to foreign direct investment.

Get in touch with us.

Lead Form

What you’ll get

A prompt response to your inquiry

Knowledge for doing business from local experts

Ongoing support for your business

Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

More on Business Setup

Property Ownership in Bali: 7 Steps for Foreign Investors

7 Steps to Property Ownership in Bali for Foreign Investors

Read more
The Investment Opportunity for an Electric Vehicle Ecosystem in Indonesia

The Investment Opportunity for an Electric Vehicle Ecosystem in Indonesia

Read more
Indonesia Positive Investment List

Indonesia Improves Foreign Investment Landscape with A Positive Investment List

Read more