By the end of 2025, Indonesia’s cryptocurrency user base exceeded 20 million. However, around 72% of licensed exchanges remain unprofitable. Total trading volume dropped to IDR 4,822.3 trillion (~$30B) in 2025, down significantly from IDR 6,500 trillion in 2024, indicating declining market activity.
Overseas Platforms Attract Local Traders
Indodax CEO William Sutanto noted that Indonesian traders are increasingly turning to overseas platforms for lower fees, faster withdrawals, and to avoid local tax burdens. Accessing foreign platforms via VPN reduces the compliance and tax costs that local exchanges must bear.
Regulatory Environment Changes
Since January 2025, regulatory authority over crypto trading in Indonesia shifted from Bappebti to the Financial Services Authority (OJK), which has issued 29 exchange licenses to date. Competition has intensified, with international platforms such as Binance and Bybit entering the local market, putting additional pressure on domestic exchanges.
Risks Facing Local Exchanges
Recently, Indodax is under investigation by OJK due to customer fund losses of approximately IDR 600 million (~$38,000). This underscores the need for exchanges in fast-growing markets to manage user assets and trading risks across multiple dimensions. In this context, tools like Trustformer KYT can provide backend data analytics, help identify potentially abnormal fund flows, and enhance overall security and decision-making efficiency.
Market Outlook and Challenges
Despite the continued growth in user numbers, local exchanges face significant profitability and compliance pressures. With regulatory frameworks improving and international competition intensifying, exchanges must balance security, compliance, and service efficiency to maintain sustainable development and user trust.