Indonesia’s Crypto Exchanges Struggle Despite 20 Million Users

Indonesia’s crypto industry is facing a growing paradox: while the number of crypto users has surged past 20 million, most licensed domestic exchanges remain unprofitable. According to data from Indonesia’s Financial Services Authority (OJK), around 72% of licensed crypto exchanges were still losing money as of the end of 2025, highlighting deep structural challenges in the market.

OJK figures show that total crypto transaction value in Indonesia fell to IDR 482.23 trillion (around $30 billion) in 2025, down sharply from IDR 650 trillion in 2024. Regulators attribute this decline not to falling interest, but to Indonesian traders increasingly using overseas crypto exchanges instead of local platforms. Global and regional exchanges offer lower trading fees, faster withdrawals, and deeper liquidity, making them more attractive to active traders.

Indodax CEO William Sutanto said domestic exchanges are at a disadvantage due to higher tax and compliance costs. While local platforms must meet strict regulatory and reporting requirements, foreign exchanges serving Indonesian users often operate without the same obligations. Many Indonesian investors can still access overseas platforms using VPNs, with deposits and withdrawals processed through local banks, creating an uneven playing field.

User sentiment also plays a role. Some Indonesian traders cite complex withdrawal procedures on local exchanges, especially for transactions above $1,000, compared with near-instant peer-to-peer withdrawals on global platforms. Trust concerns persist as well, following Indodax’s 2024 security incident, which continues to influence user behavior despite assurances that losses were caused by phishing and social engineering rather than system breaches.

The situation has become more competitive since January 10, 2025, when crypto oversight shifted from Bappebti to OJK. The new framework ended the previous single-exchange structure and expanded licensing, resulting in 29 licensed exchanges competing for a relatively limited domestic market. Thin margins have made profitability even harder to achieve.

At the same time, global players are entering Indonesia directly. Robinhood announced plans to acquire local brokerage and crypto firms, Bybit partnered with NOBI to launch Bybit Indonesia, and Binance already operates through Tokocrypto. Unlicensed foreign platforms further drain liquidity and are estimated to cost Indonesia up to $110 million in lost tax revenue annually.

Industry leaders are calling for stronger enforcement against illegal foreign exchanges and closer collaboration between regulators and domestic players to create a fairer, more sustainable crypto ecosystem in Indonesia.