Indonesia has achieved a significant milestone, recording a staggering $2 billion in cryptocurrency transactions. This monumental leap comes amidst a surge in the number of crypto investors in the country, which soared to 19 million in February.
According to reports from Indonesia’s cryptocurrency regulator, the surge in transactions was fueled by a positive market sentiment, largely attributed to the surge in Bitcoin’s value and the rally of various altcoins. Lawrence Wong, Singapore’s Deputy Prime Minister and Minister for Finance, unveiled the country’s 2024 Budget Statement in February, allocating a substantial S$2 billion to enhance the digital economy. This move signaled a major push towards financial innovation and the integration of digital assets, likely influencing investor confidence in Indonesia.
The Commodity Futures Trading Supervisory Agency (Bappebti) revealed that crypto transactions in Indonesia amounted to a staggering 30 trillion Indonesian Rupiah, equivalent to $1.92 billion. Moreover, the number of registered crypto investors surged to 19 million by the end of February, marking a significant increase of 170,000 users compared to the previous month.
Despite the remarkable growth, Bappebti aims to surpass the transaction volume seen during last year’s bull run, which stood at $51.28 billion. Tirta Karma Senjaya from Bappebti expressed optimism about a potential rebound in 2024, citing Bitcoin halving as a significant driving force.
To achieve the targeted transaction volume, one proposed strategy is to reduce or eliminate taxes on crypto transactions. Currently, these transactions incur a tax rate of 0.10% for Income Tax and 0.11% for Value Added Tax (VAT) on users, while exchanges are taxed at 0.02% per transaction.
The surge in Indonesia’s cryptocurrency investors can be attributed to Singapore’s Lawrence Wong 2024 budget statement, which allocated a significant S$2 billion towards strengthening the country’s digital economy. This substantial investment indicates a proactive approach to financial innovation and digital asset incorporation, likely boosting investor confidence in neighboring Indonesia.
Hassan Ahmed, Coinbase Singapore’s Country Director, highlighted how this investment will enhance Singapore’s digital economy and cement its position as the fintech hub of Asia. With Indonesia’s crypto landscape poised for further growth, the country’s emergence as a key player in the global crypto market is becoming increasingly evident.
