How Indonesians Trade Cryptocurrency Legally in 2025

• DATE: 8 01 25
• BY: Stellan Marwick

Indonesia doesn’t ban cryptocurrency - it just makes you play by strict rules. If you’re trading crypto here in 2025, you’re not breaking the law. But if you skip the steps, you could lose money, face fines, or even get your account frozen. The system is clear: crypto is an investment, not a payment method. You can buy, sell, and hold it. But you can’t use Bitcoin to pay for coffee, rent, or groceries. That’s illegal. And the government is watching.

Who’s in Charge Now? OJK Took Over in 2025

Before January 2025, the Commodity Futures Trading Regulatory Agency (BAPPEBTI) handled crypto rules. Now, it’s all under the Financial Services Authority, or OJK. This wasn’t just a name change. It meant crypto went from being treated like a commodity - similar to gold or soybeans - to being classified as a digital financial asset. That shift changed everything: how exchanges operate, how taxes are collected, and how users get verified.

The OJK doesn’t just oversee banks and insurance companies anymore. It now runs the entire crypto ecosystem. All exchanges must be licensed under Regulation No. 27 of 2024. As of June 2025, only 22 platforms passed the test. Big names like Indodax, Tokocrypto, and Pintu are on the list. If you’re trading on anything else - even a platform that looks legit - you’re outside the law.

The New Tax Rules: 0.21% vs. 1% - It’s a Big Difference

On August 1, 2025, the old crypto tax system died. Minister of Finance Regulation No. 50 of 2025 (PMK 50/2025) replaced everything. The biggest change? No more Value Added Tax (VAT). Crypto is no longer seen as a good you buy and sell. It’s treated like stocks or mutual funds. That means no 10% VAT. But now there’s a final Income Tax, and it depends on where you trade.

• 0.21% - If you trade on an OJK-licensed exchange (like Indodax or Tokocrypto), this is your tax rate. It’s automatic. The exchange calculates and pays it for you.
• 1% - If you use a foreign exchange (like Binance, Kraken, or Coinbase), you’re on your own. You must report and pay this yourself. And yes, they know if you do. The OJK and tax office share data with foreign platforms through the National Single Window system.

That 0.79% gap is huge. For someone trading $10,000 a month, it’s $79 extra in taxes if they use a foreign platform. That’s why most serious traders now stick to local exchanges. But here’s the catch: the tax rate isn’t the only cost. The compliance burden is heavier.

How to Get Started: The 4-Step Legal Process

You can’t just sign up and start trading. The OJK requires a strict onboarding process. Here’s what you need to do:

1. Choose a licensed exchange - Go to ojk.go.id and check the official list. Don’t trust third-party blogs or Reddit posts.
2. Submit your documents - National ID (KTP), Tax Identification Number (NPWP), and a selfie holding your ID. No exceptions. If your NPWP is expired, you won’t pass.
3. Pass the financial literacy test - A 15-question quiz on crypto risks, volatility, scams, and how blockchain works. You need 80% to pass. Most people fail once. It’s not hard, but it’s designed to make you think before you invest.
4. Link your bank account - Only Bank Indonesia-registered accounts work. You can’t use e-wallets like OVO or GoPay to deposit fiat. Must be a real bank account: BRI, BNI, Mandiri, Danamon, etc.

This process used to take 1-2 days under BAPPEBTI. Now, it takes 3-7 business days. Some users report delays because exchanges are still adjusting to OJK’s stricter KYC rules. If you’re in a hurry, start early.

What Happens If You Use a Foreign Exchange?

Technically, you can still use Binance or Kraken. But you’re taking a risk. The OJK and Directorate General of Taxes (DGT) now monitor foreign transactions. If you make more than IDR 500 million (about $32,500) in a year, you’re flagged. You must file a self-report by March 31 each year using the e-Filing system.

Many users don’t realize this is mandatory. A survey by Sanction Scanner found that 63.2% of Indonesians didn’t understand they had to report foreign trades. One trader in Jakarta lost $2,850 because he thought the 1% tax was optional. He didn’t file. The DGT sent a notice. He had to pay back taxes, penalties, and interest.

Also, foreign exchanges don’t automatically withhold tax. You have to calculate it yourself. If you bought Bitcoin at $30,000 and sold at $40,000, your profit is $10,000. You owe 1% of that: $100. It sounds small, but if you trade often, it adds up. And if you get audited, you need records - every trade, every timestamp, every wallet address.

The Hidden Costs: Slower Service, More Checks

There’s a trade-off for legality. Since the OJK took over, customer service has gotten slower. Indodax, the largest exchange, now has an average 3.8/5 rating on Trustpilot. The top complaints? Withdrawals taking 5+ days and support responses taking over 4 hours.

Why? Because every transaction above IDR 500 million must be flagged and reviewed for money laundering. Every new user must be manually verified. Every withdrawal over IDR 100 million needs special OJK approval. It’s not bureaucracy for the sake of it. It’s designed to stop fraud and terrorist financing.

But it frustrates users. One Reddit user wrote: “I had $5,000 in my account for 5 days because they needed a notarized letter from my bank. I didn’t even know that was a thing.”

Who’s Trading? The Real Users in Indonesia

As of June 2025, Indonesia has 14.3 million active crypto users - nearly 5% of the population. But it’s not evenly spread. Most are young: 68.3% are between 18 and 35. Most are men: 76.4%. And most live in Java - Jakarta, Bandung, Surabaya.

The top three exchanges control 91% of the market:

• Indodax: 47.2%
• Tokocrypto: 28.5%
• Pintu: 15.3%

The rest? Nine smaller platforms, each with less than 2% market share. Many of them are struggling to meet the new capital requirement of IDR 5 billion ($325,000). Experts predict only 12-15 exchanges will survive by 2026.

What’s Coming Next? Two Big Changes in 2026

The rules aren’t done changing. Two major updates are on the horizon:

1. Proof-of-reserves audits - Starting January 1, 2026, every licensed exchange must prove they hold enough crypto to cover all user balances. No more “we lost it in a hack” excuses. This is meant to prevent another Terra/Luna collapse from wiping out Indonesian investors.
2. Possible stablecoin payments - Bank Indonesia is quietly exploring whether to allow certain stablecoins (like USDT or BUSD) for cross-border remittances. Right now, sending money overseas via crypto is a gray zone. If approved, it could be a game-changer for overseas workers sending money home.

There’s also talk about taxing staking rewards in 2026. Right now, if you earn interest on your crypto, you don’t pay tax. That could change. The DGT has hinted that staking will be treated like dividend income.

Is It Worth It?

Yes - if you follow the rules. Indonesia’s crypto market is one of the largest in Southeast Asia. The legal framework is clearer than in Thailand or the Philippines. The tax rate for local trades is low. The exchanges are secure. The government isn’t trying to crush crypto. It’s trying to control it.

The real danger isn’t breaking the law. It’s not understanding it. People lose money not because crypto crashed - but because they didn’t know they had to file taxes, or they used an unlicensed platform and got locked out of their funds.

Stick to OJK-licensed exchanges. Pay the 0.21%. Keep your records. Don’t assume foreign platforms are safer. And if you’re unsure? Call the OJK’s 24/7 hotline: +62 21 157 8900. It’s not perfect. But it’s the only legal path.