Indonesia Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Ministry of Investments, Financial Services Authority, Commodity Futures Trading Regulatory Agency
Risk Level: medium
Primary Legislation: Omnibus Financial Law (P2SK) (2023), Bappebti Regulation 5/2019 (amended) (2019)
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: 0.1% income tax + 0.11% VAT on each crypto transaction (since May 2022). Very large market by population.. Trading gains and sales are subject to final income tax (PPh 22 Final) at 0.21% of the gross transaction value for domestic exchanges (up from 0.1%, effective around August 2025).. For overseas or non-approved exchanges, the rate is 1% (up from 0.2%).. This is a flat final tax on transaction value, not traditional capital gains based on profit; it applies to sellers, collected by approved exchanges (PPMSEs).. Crypto-to-crypto trades may trigger VAT in some cases under PMK 50/2025, but trading gains remain under final income tax.

Key Facts

aml Receiving and analyzing STRs (within 3 working days) and CTRs. Issuing guidelines for suspicious transactions and compliance. Providing financial intelligence to law enforcement. Conducting risk assessments and supporting national AML strategies. Financial Services Authority (OJK): Primary regulator since January 10, 2025, supervising trading, exchanges, settlement, clearinghouses, custodians, and asset dealers. It enforces licensing, governance, capital requirements, KYC/AML, and a "same activity, same risk, same regulation" principle aligned with global standards. Bank Indonesia (BI): Central bank enforcing the Currency Law, prohibiting crypto use for payments and upholding the rupiah as sole legal tender. Commodity Futures Trading Regulatory Agency (BAPPEBTI): Former regulator until the 2025 transition to OJK; previously oversaw crypto as commodities. OJK Regulation No. 27 of 2024: Classifies crypto as digital financial assets; mandates compliance on capital, consumer protection, and AML by July 2025. Effective post-January 2025 transition.
enforcement Case Context: Indonesian authorities, led by PPATK and Densus 88, analyzed on-chain data to trace funds from domestic sources (e.g., Indonesian exchanges) to foreign terrorism networks. One individual sent 15 transactions totaling over 49,000 USDT. Defendants acted as financiers, not direct attackers. Significance: Marked Southeast Asia's first court acceptance of blockchain evidence in terrorism financing cases, setting a legal precedent. PPATK noted rising suspicious crypto transactions, including a 2023 joint action uncovering ISIS funding disguised as humanitarian aid. Regulatory Shift: OJK assumed crypto oversight from Bappebti in January 2025, mandating AML/CFT reporting (SEOJK No. 20/2024), which supported these investigations. Case Context: Kominfo probed Worldcoin's data practices amid global concerns (e.g., similar actions in Kenya, Germany). Emphasized protecting digital rights under Indonesian law. Significance: Highlights Indonesia's focus on data privacy in crypto/biometric projects, aligning with OJK's consumer protection rules (e.g., OJK No. 27/2024).
general OJK (Otoritas Jasa Keuangan - Indonesia's Financial Services Authority) Bappebti (Indonesia's commodity futures regulator) PPATK (Indonesia's financial intelligence unit) Indonesian financial legislation (Omnibus Financial Law P2SK) VASP registration requirements in Indonesia Indonesian cryptocurrency exchanges or custody regulations Indonesian tax rates on crypto transactions Current OJK regulatory framework and VASP requirements (post-January 2025)
licensing OJK — Financial services authority — VASP oversight (from Jan 2025) Bappebti — Former crypto commodity regulator (authority transferred to OJK Jan 2025) PPATK — Financial intelligence unit — AML compliance Omnibus Financial Law (P2SK) (2023) — Transfer of crypto oversight from Bappebti to OJK Bappebti Regulation 5/2019 (amended) (2019) — Crypto asset trading as commodity futures VASP: VASP Registration/License with OJK (post-Jan 2025 transfer). Previously IDR 50B (~$3.2M USD) minimum capital under Bappebti. OJK requirements being finalized. Must establish Indonesian entity (PT). 6-12 months. CUSTODY: Included under VASP license; customer asset segregation required EXCHANGE: Physical trader registration. National crypto bourse (Bursa Kripto Indonesia) launched 2023. Islam-related considerations (MUI halal debate) affect adoption.
status Indonesia regulatory status: comprehensive, framework-developing
tax 0.1% income tax + 0.11% VAT on each crypto transaction (since May 2022). Very large market by population. Trading gains and sales are subject to final income tax (PPh 22 Final) at 0.21% of the gross transaction value for domestic exchanges (up from 0.1%, effective around August 2025). For overseas or non-approved exchanges, the rate is 1% (up from 0.2%). This is a flat final tax on transaction value, not traditional capital gains based on profit; it applies to sellers, collected by approved exchanges (PPMSEs). Crypto-to-crypto trades may trigger VAT in some cases under PMK 50/2025, but trading gains remain under final income tax. Mining/staking income: No special 0.1% rate; subject to standard personal or corporate income tax rates (effective 2026); mining VAT doubled to 2.2%. Older rates (pre-2025): 0.1% domestic, 0.2% foreign; some sources note 0.12% VAT + 0.1% income tax per transaction. Sales of crypto assets are exempt from VAT (previously 0.11%-0.22% when treated as commodities).
travel rule Travel Rule adopted — threshold: IDR 100,000,000

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile