Young people are driving the growth of the cryptocurrency market in Indonesia, with over 60% of investors aged between 18 and 30 years old. The Indonesian government is actively strengthening regulation to ensure the investment and transactions of this young demographic are protected. From January to September this year, the cryptocurrency trading volume in Indonesia reached $27.1 billion, a staggering 351.97% increase compared to last year.
According to the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti), currently, more than 60% of cryptocurrency investors in Indonesia are aged between 18 and 30 years old, with 26.9% falling between 18 and 24 years old, and 35.1% between 25 and 30 years old. This indicates that cryptocurrency investment is highly popular among the young population in Indonesia, and their interest in digital assets is growing.
The financial planning awareness of Indonesian youth has also increased. According to a report, 38% of millennials and 41% of Generation Z prioritize financial planning, savings, and investments. Additionally, 32% of millennials and 26% of Generation Z allocate a portion of their income for investments, demonstrating the importance Indonesian youth place on financial planning and investment.
The trading volume of cryptocurrency in Indonesia has experienced explosive growth, reaching approximately $27.1 billion this year, a 351.97% increase compared to the previous year. Although there was a slight decrease in August, the total trading volume from January to September amounted to IDR 426.69 trillion (approximately $27.1 billion), indicating a significant surge in cryptocurrency trading activity.
The Indonesian regulatory authorities have been continuously strengthening their oversight of the cryptocurrency market as the number of young cryptocurrency investors in Indonesia continues to rise. The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has extended the compliance deadline for local cryptocurrency exchanges to obtain the Physical Crypto Asset Traders (PFAK) license until the end of November 2024 to ensure a secure investment environment and a healthy market for investors. This extension is the result of the third revision of Indonesian Regulation No. 9 of 2024. Since 2021, Bappebti has been adjusting its regulatory framework to adapt to the development of the cryptocurrency market.
To combat cryptocurrency fraud, Bappebti has collaborated with Binance’s Financial Intelligence Unit (FIU) and the Indonesian exchange Tokocrypto, working together with the Indonesian Criminal Investigation Bureau (Bareskrim) to crack down on criminal activities and recover approximately $200,000 worth of cryptocurrency assets. This demonstrates Indonesia’s proactive approach in protecting cryptocurrency investors.
(Indonesia announces the launch of state-owned cryptocurrency exchanges and clearinghouses)