Main Points :
- Over 60% of Indonesian crypto investors are under 30, reflecting global trends in young investors’ interest in cryptocurrency.
- Cryptocurrency transactions in Indonesia totaled 3,367 trillion IDR ($2.1 billion), with popular assets including USDT, ETH, BTC, PEPE, and SOL.
- Indonesia recognizes cryptocurrency as a commodity but imposes dual taxation, creating challenges for local investors.
- Calls for tax reforms are underway, with experts highlighting cryptocurrency’s potential role in the national economy.
- Indonesian crypto trends align with global data showing young investors in countries worldwide favoring cryptocurrency as an investment vehicle.
Youth and Cryptocurrency: Indonesia’s Key Demographic
Indonesia is witnessing a growing cryptocurrency adoption among its young population. According to the Commodity Futures Trading Regulatory Agency (BAPPEBTI) and local crypto platforms, over 60% of Indonesian cryptocurrency investors are aged 18 to 30. Further demographic data reveals that 26.9% of users are between 18 and 24, while 35.1% are aged 25 to 30. This preference among the younger demographic echoes global patterns, such as in the United States, where a substantial portion of Gen Z and millennials prioritize digital assets over traditional investments.
Market Volume and Popular Cryptocurrencies
The Indonesian cryptocurrency market has seen substantial trading activity, with transactions reaching a total volume of 3,367 trillion IDR ($2.1 billion). The top cryptocurrencies in this market include Tether (USDT), Ethereum (ETH), Bitcoin (BTC), Pepe (PEPE), and Solana (SOL), which are widely traded across various platforms. With a user base of 21.27 million individuals, Indonesia is emerging as one of the more significant players in the global cryptocurrency landscape.
Regulatory Landscape and Double Taxation Issues
Indonesia’s regulatory environment is relatively open toward cryptocurrency, recognizing it as a tradable commodity. However, investors face a dual taxation system, which imposes both a 0.11% value-added tax (VAT) and a 0.1% capital gains tax on cryptocurrency transactions. This taxation model has led to frustrations among investors and discussions on potential tax revisions to encourage the continued growth of this asset class.
The Push for Regulatory Reform
BAPPEBTI has expressed a desire for the government to revisit cryptocurrency tax policies to foster a more favorable environment. Market Development Director Tirta Karma Senjaya has stated that cryptocurrency may become a core part of Indonesia’s financial system, urging the Taxation Directorate General to consider reforms that align with this vision. These reforms could make digital assets a more integrated part of the Indonesian economy and possibly reduce barriers for investors.
Global Youth Trends in Cryptocurrency
Indonesia’s trend of youth-driven cryptocurrency investment mirrors global patterns. For instance, data from Policygenius in the U.S. shows that 20% of Gen Z adults and 22% of millennials are more inclined to invest in cryptocurrencies compared to older generations. Bitget’s survey of 255,000 individuals across 26 countries further supports this trend, noting that 46% of millennials in major economies own cryptocurrency. These insights highlight a universal appeal of digital assets among young adults seeking alternative investment opportunities.
Indonesia’s growing cryptocurrency market, driven predominantly by young investors, underscores a shift toward digital assets as a popular investment avenue. However, the current dual taxation structure poses challenges, prompting calls for regulatory reform. With substantial trade volumes and a significant user base, Indonesia’s engagement in the cryptocurrency sector could have substantial economic implications if regulatory adjustments are made. As young investors continue to shape the global digital asset landscape, Indonesia’s evolving policies will play a critical role in defining its position in the broader cryptocurrency market.
