Indonesia’s Crypto Industry Could Add $16.5B To Economy, Create 1.2M Jobs: Report

What Happened

According to a study by the University of Indonesia’s Institute for Economic and Social Research (LPEM FEB UI), crypto trading could boost the country’s GDP by 0.86% to 1.18% if trading profits are reinvested locally in productive sectors.

“The real economic impact will only be felt if crypto trading profits are used locally in productive ways,” said LPEM FEB UI researcher Prani Sastiono during the launch event in Jakarta.

As reported, MEXC Ventures has taken a strategic bet on Indonesia’s growing crypto market, investing in crypto exchange Triv at a $200 million valuation.

The timing of the investment is notable, coming just after the implementation of Indonesia’s updated crypto tax rules on August 1.

Market Context

These include strengthening supervision of illegal trading platforms, improving digital literacy and user data protection, and expanding crypto product diversity, including asset-backed stablecoins and tokenized local projects.

Domestically, OJK is working with the Task Force for the Eradication of Illegal Financial Activities (Satgas PASTI) and the Indonesia Anti-Scam Centre (IASC) to tackle fraud and illegal trading.

For users trading through foreign platforms, the seller tax has surged from 0.2% to 1%. While VAT on purchases has been removed, crypto miners now face a 2.2% VAT and will soon be subject to regular income tax rates as a special 0.1% mining tax is phased out by 2026.

Why It Matters

Indonesia’s fast-growing cryptocurrency sector could become a major driver of economic growth, potentially adding Rp260.36 trillion ($16.5 billion) to the national economy and creating up to 1.22 million new jobs.

Indonesia’s crypto industry could add $16.5 billion to the economy and create 1.22 million jobs.

The researchers believe these figures could grow significantly with clear regulations, improved oversight, and higher financial literacy.

Furthermore, the study suggests reforming crypto taxation to maintain competitiveness while ensuring government revenue and updating advertising guidelines to let licensed platforms promote responsibly.

Details

Key Takeaways:

In 2024 alone, crypto activities contributed $4.4 billion to GDP and generated over 333,000 jobs.

The report urges stronger regulation, digital literacy, and tax reform to ensure sustainable growth.

Indonesia’s Crypto Sector Added $4.4B to Economy and 333,000 Jobs in 2024

In 2024 alone, crypto-related activities contributed Rp70.04 trillion ($4.4 billion) to Indonesia’s economy, representing 0.32% of GDP, and generated more than 333,000 jobs, the report found.

To harness this potential, the study outlines five policy recommendations.

Indonesia’s crypto adoption has surged in recent years, but regulators are still refining rules to balance innovation with consumer protection.

Dino Milano Siregar, head of the Digital Financial Innovation and Crypto Asset Oversight Department at the Financial Services Authority (OJK), said effective supervision must go beyond borders.

“Crypto is inherently borderless, so supervision cannot be done in isolation. It requires coordination among local and global institutions,” Siregar said at a forum hosted by LPEM FEB UI on October 8.

The regulator also cooperates with Bank Indonesia, the National Cyber and Crypto Agency (BSSN), and international partners such as the UN Office on Drugs and Crime (UNODC) to enhance cross-border monitoring.

MEXC Backs Indonesia’s Crypto Exchange Triv

The revised structure imposes a 0.21% tax on domestic exchange users, double the previous rate.

Notably, the Indonesian government is reportedly weighing the use of Bitcoin as a reserve asset, according to Bitcoin Indonesia, which met with officials from the Vice President’s office to pitch the idea as part of a broader national economic strategy.