The Indonesian government is reportedly racing to finalize the transfer of oversight of the crypto industry from the Commodity Futures Trading Agency (Bappebti) under the Ministry of Trade to the Financial Services Authority (OJK) before a looming deadline.
Indonesia’s Crypto Oversight Transition Suspended
On Thursday, OJK Chairman Mahendra Siregar spoke about the preparations for the evolution of the crypto authority at the opening ceremony of the 2025 stock market in Jakarta. Mahendra revealed that discussions and plans are ongoing, with a draft government regulation prepared in an official manner, the Jakarta Globe reported.
The change, scheduled to be completed on January 12, will transfer oversight of the crypto industry from the Commodity Futures Trading Agency, which has overseen digital assets since 2018, to the Financial Services Authority.
The transfer has reportedly been suspended due to “the absence of a government-backed law.” Finance Minister Sri Mulyani Indrawati launched the program in late 2022. The bill is expected to become law once the legislative and executive branches of the Indonesian government reach agreement on all provisions.
As of January 2, 2025, the official bill for the transition has not been published, but the Chairman of the OJK said that the organization “has been working with the Ministry of Commerce to ensure a smooth process.” Mahendra added, “Once this law is passed, it will provide a legal basis for the revolution.”
Transfer to the OJK is expected to promote a more transparent and comprehensive regulatory framework in line with international standards. However, Bappebti Chief Kasan explained that the existing laws will remain in force until a new law is enacted.
According to the report, OJK Commissioner Hasan Fawzi explained that the agency “conducted in-depth studies on global trends in crypto regulation and prepared its staff for the role.”
The Indonesian Landscape
Nailul Huda, a digital economy expert, criticized the delay in the change, adding that the slow response suggests the Commerce Ministry’s reluctance to relinquish its regulatory role. He stressed that “although the supervision of the OJK may bring strict regulations, its knowledge will benefit investors.”
In addition, several traders and crypto exchanges are reported to believe that this change will streamline regulatory oversight and allow direct transactions under the supervision of the OJK and the Bank of Indonesia.
It is noteworthy that the Indonesian government has been criticized for its regulatory measures and precautionary approach, which prohibits the use of cryptocurrencies as a direct payment method for goods and services. Similarly, various industry players are looking at the country’s double tax on crypto which may have contributed to the growth of the market in recent years.
Despite the country’s regulatory structure, Indonesia has one of the highest adoption rates in the world. Bappebti reported that more than 18.51 million people invested in cryptocurrencies in 2023. That year, the country was ranked 7th in global crypto adoption rates by Chainalysis.
In 2024, Indonesia ranked 3rd, overtook countries such as the United States and Russia and became one of the largest countries in terms of numbers of crypto traders. Additionally, the country’s market recorded a 350% year-on-year (YoY) increase in crypto transactions, crossing $30 billion between January and October.
Bitcoin (BTC) is trading at $96,819 in the one-week chart. Source: BTCUSDT on TradingView
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