Jakarta. Preparations are underway to make Indonesia the hub of crypto transactions in Asia, according to the Futures Exchange Supervisory Board (Bappebti).

Cryptocurrency transactions are on the rise in Indonesia. Amid the crypto market boom, there is a potential for Indonesia to be a hub for its development in Asia. The government had been trying to bolster the country’s crypto ecosystem, Bappebti’s head Kasan said on Monday. Last year, Indonesia already launched a state-backed crypto exchange to better protect investors. It has also established other key institutions, including a clearing house.

"Bappebti -- as the regulator for the crypto industry -- is working on the ecosystem. We have already established the clearing, depository, and exchange. Preparations are underway to sign up more crypto trader companies into our ecosystem,” Kasan told the press on the sidelines of The Jakarta Globe’s 2025 Economic Perspective forum.

Kasan said 35 companies had applied to be physical crypto traders. Only investment firms Pluang and Pintu had already got Bappebti’s green light thus far.

Bappebti data showed crypto transactions in Indonesia had topped Rp 344.09 trillion (almost $22.3 billion) in January-July 2024. This marked a 353.94 percent increase in cryptocurrency transactions compared to the same seven-month period the previous year. As many as 20.59 million Indonesians had invested in crypto as of last month. 

“There are more people who make crypto transactions abroad, but we are the only country to have regulated the ecosystem. I don’t think such a system exists anywhere else in the world. Hopefully, this will attract [cryptocurrency transactions] from overseas to Indonesia. If [those crypto investors] really make their transactions in our bourse, that is similar to attracting capital inflow,” Kasan said.

Crypto is not a legal means of payment in Indonesia. However, the government allows investment in cryptocurrency. As the government tries to chase the Asian crypto hub dream, Bappebti reminded investors to remain careful, saying that they should really understand how the system works first before investing. Crypto investors also need to check whether the traders already have their licenses.

“The existing regulations should not only improve the [crypto] business climate, but it should also provide its investors protection. We [Bappebti] will make sure that [the investors] are better informed [about crypto],” Kasan said.

Bursa Komoditi Nusantara runs the crypto bourse in Indonesia. The government appointed Kliring Berjangka Indonesia as the clearing house, while Tennet Depository Indonesia is in charge of being the crypto asset store manager.