The Indonesian government is reportedly finalizing the transfer of authority to oversee the crypto industry from the Commodity Futures Trading Agency (Bappebti) under the Ministry of Commerce to the Financial Services Authority (OJK) ahead of the The deadline is approaching.
Indonesia’s crypto oversight transition stalled
On Thursday, OJK Chairman Mahendra Siregar spoke about preparations for the crypto authority’s transition at the 2025 bourse opening event in Jakarta. Mahendra revealed that discussions and arrangements are ongoing, with the draft government regulations being prepared in an official format, reports the Jakarta Globe.
The transition, which is expected to be completed by 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 was reportedly blocked due to “lack of supporting government regulations.” Finance Minister Sri Mulyani Indrawati presented the plan 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 draft law for the transition had not yet been published, but the OJK president said the agency was “working closely with the Ministry of Commerce to ensure a smooth process” . Mahendra added: “Once the regulation is published, it will provide the legal basis for the transition. »
The transfer to OJK is expected to foster a more transparent and comprehensive regulatory framework consistent with international standards. However, Chief Bappebti Kasan explained that the existing rules will remain in effect until the new regulations are promulgated.
According to the report, OJK Commissioner Hasan Fawzi detailed that the agency “has conducted in-depth studies on global crypto regulatory practices and prepared its staff for this role.”
The Indonesian landscape
Nailul Huda, a digital economy expert, criticized the delay in the transition, adding that the slow response suggests a reluctance on the part of the Commerce Ministry to relinquish its oversight role. He said that “although OJK’s oversight may lead to stricter regulations, its experience will benefit investors.”
Additionally, several crypto brokers and exchanges believe that the transition will streamline regulatory oversight and allow direct trading under the supervision of OJK and Bank Indonesia.
It is worth noting that the Indonesian government has been criticized for its regulatory measures and cautious approach, which prohibited the use of cryptocurrencies as a direct payment method for goods and services. Likewise, various industry players consider the country’s double taxation on crypto to have potentially hampered the market’s growth in recent years.
Despite the regulatory landscape, 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 ranked 7th in Chainalysis’ global crypto adoption rankings.
In 2024, Indonesia ranked 3rd, surpassing countries like the United States and Russia and becoming one of the largest countries in terms of the number of crypto traders. Additionally, the country’s market saw a 350% year-over-year increase in crypto transactions, surpassing $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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