Indonesia is preparing a new regulatory package aimed at tightening oversight of crypto exchanges. Officials from the Ministry of Trade and the Commodity Futures Trading Regulatory Agency, known as Bappebti, told a parliamentary hearing in Jakarta that the revised framework will impose stricter requirements on exchange governance, custody arrangements, and licensing standards.
One of the most notable provisions would require two-thirds of a crypto exchange’s directors to be Indonesian citizens residing in the country. Acting Bappebti head Didid Noordiatmoko said the goal is to reduce the risk of senior management leaving the country if problems emerge. The move follows the financial difficulties faced by Southeast Asia-focused exchange Zipmex, which previously suspended withdrawals.
Stronger custody rules and tighter licensing
Indonesia also plans to require crypto exchanges to use third parties to hold client funds. In addition, platforms would be barred from reinvesting the crypto assets placed in custody. The proposed measures suggest regulators want clearer separation between customer assets and exchange operating risk, especially after recent stress events in the regional market.
Deputy Trade Minister Jerry Sambuaga said the government does not want to issue licenses carelessly and will only approve exchanges that meet the required standards and are considered credible. He did not provide a specific timeline, but said Bappebti is expected to release the new rules soon.
Market growth continues despite tighter oversight
Even as rules are set to become stricter, Indonesia is not stepping back from the crypto sector entirely. Sambuaga confirmed that the government still plans to launch a national crypto asset bourse this year, although the rollout has already been delayed several times. At present, Indonesia allows crypto assets to be traded as commodities, but does not recognize crypto as a payment instrument.
On taxation, the country’s Directorate General of Taxes said in April that it set both income tax on capital gains from crypto investments and value-added tax on crypto purchases at 0.1%. Market activity has expanded rapidly: Bappebti data show that crypto transactions in Indonesia reached 859.4 trillion rupiahs in 2021, up 1,224% from 64.9 trillion rupiahs in 2020. In the first six months of this year, the country recorded 15.1 million crypto users with total transaction value of 212 trillion rupiahs. Against that backdrop, the planned rules appear aimed at balancing industry growth with stronger investor protection and accountability.