Cryptocurrency in Indonesia

According to a study by the Indonesian Financial Services Authority (BPS), more than half of cryptocurrency investors and traders in Indonesia are women. This is a significant shift from earlier years, when the majority of investors were male. This could be due to the growing popularity of cryptocurrencies and blockchain technology, which are seen as more accessible and user-friendly for women. ..

Bitcoin and other cryptocurrencies were legalized in Indonesia 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, 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). ..

This article discusses the rise of Indonesian celebrities and governmental figures embracing crypto-currencies and other technological advancements.

Despite the lack of investment, Indonesia is still on the forefront of blockchain technology. Multiple sources report that only about 4% of Indonesian users are currently invested in crypto, but this number is expected to grow in the coming years. Indonesia is still working to perfect its blockchain technology and ensure that it is accessible to all.

Cryptocurrency is Haram?

This is not the first time that cryptocurrency has been considered haram by Indonesia’s MUI. In late 2018, the council ruled that bitcoin and other digital currencies were not legal tender in the country. This was despite the fact that bitcoin is a global currency and can be used in many countries.

MUI’s website says that cryptocurrency is considered to contain gharar, and dharar, and is contrary to Indonesian Bank Regulation Number 7 of 2011 and Indonesian Bank Regulation Number 17 of 2015. This means that any crypto investments are haram, as they are not subject to the same regulations as other financial products.

There is no legitimate proof of whether crypto investments are haram or not. Despite the controversy, to this date, crypto investments are legal in Indonesia regardless of religion.

In 2022, the Commodity Futures Trading Regulatory Agency in Indonesia (BAPPEBTI) approved 229 crypto assets for trading. This includes Bitcoin, Ethereum, Litecoin, Ripple and other popular cryptocurrencies. ..

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.

There is not currently a Bitcoin ATM in Indonesia.

Indonesia recently installed its first Bitcoin ATMs, though it is not yet popularized. ..

Yes, Binance is available in Indonesia.

Binance is a popular cryptocurrency exchange in Indonesia.

Yes, blockchain is available in Indonesia. ..

There are a few ways to cash out Bitcoin in Indonesia. The most common way is to use a Bitcoin ATM. Another way is to use a Bitcoin wallet.

Bitcoin Cash, also known as Bitcoin Cash ABC, is a fork of the Bitcoin blockchain that was created on August 1st, 2017. It follows the original Satoshi Nakamoto whitepaper and adds an additional transaction type, called a BIP 148.