Indonesia Races to Finalize Crypto Oversight Transition to OJK
Indonesia is facing delays in transferring crypto regulatory oversight from the Commodity Futures Trading Agency (Bappebti) to the Financial Services Authority (OJK) due to the absence of essential government regulations. The transition, initially scheduled for completion by January 12, 2025, is now under scrutiny as authorities work to finalize the necessary framework.
Regulatory Shift Aims for Transparency and Global Standards
Since 2018, Bappebti has been responsible for overseeing Indonesia’s crypto market. However, the upcoming transition to OJK is expected to establish a more transparent regulatory environment aligned with international standards.
The OJK plans to introduce clearer rules governing crypto trading, taxation, and exchange operations, areas that previously operated under Bappebti’s less comprehensive oversight. This regulatory overhaul supports the Financial Sector Development and Strengthening Law, designed to streamline supervision and promote a safer, more inclusive framework for digital assets.
Progress on Transition and Legal Framework Development
OJK Chairman Mahendra Siregar confirmed that discussions and preparations for the transition are actively progressing. He stated that the draft government regulation has been officially formatted, signaling an important step forward.
“We’ve been working closely with the Trade Ministry to ensure a smooth transition. Once the regulation is issued, it will establish the legal foundation for OJK’s oversight,” Siregar explained.
The initial proposal for this shift was introduced by Finance Minister Sri Mulyani Indrawati during financial sector discussions in late 2022. The plan was to take effect following approval by both legislative and executive branches.
Indonesia’s Crypto Market Surpasses $30 Billion in Transactions
Indonesia’s crypto market has witnessed remarkable growth, reaching 475 trillion rupiah (approximately $30 billion) in transactions by October 2024. This reflects a 352% increase compared to $6.5 billion recorded during the same period in 2023.
Despite this surge, the market still trails behind its 2021 peak of $54 billion, underscoring ongoing volatility in the crypto landscape.
In addition to transaction volume, Indonesia’s crypto trader base has grown significantly, hitting 21 million users. Among them, 716,000 traders actively operate through locally registered exchanges. Notably, over 60% of investors fall within the 18 to 30 age group, emphasizing strong youth participation in the market.
What’s Next for Indonesia’s Crypto Oversight?
The transition of regulatory authority to OJK marks a pivotal shift for Indonesia’s crypto market. By aligning policies with global standards and ensuring greater transparency, OJK aims to foster long-term growth and protect investors in the rapidly evolving digital asset space.
As the government finalizes regulations, market participants and investors are closely watching developments that could shape the future of crypto adoption and regulatory stability in one of the world’s fastest-growing cryptocurrency markets.
