How Indonesians Trade Cryptocurrency Legally in 2026

Indonesia doesn’t ban cryptocurrency-it just makes you do it the right way. If you’re trading crypto here, you’re not breaking the law. But if you skip the steps, you could lose money, get fined, or worse-have your account frozen. The rules changed in 2025, and they’re stricter than ever. This isn’t about guessing. It’s about following a clear path set by the government. Here’s how to trade crypto legally in Indonesia today.

It’s an Investment, Not a Payment

The first thing to understand is that crypto in Indonesia is not money. You can’t use Bitcoin to buy coffee, pay for groceries, or send money to a friend through a digital wallet. That’s illegal. The central bank, Bank Indonesia, made it clear in 2018: only the rupiah is legal tender. This rule was reinforced in 2023 under the Financial Sector Development Law. So if you’re using crypto to pay for anything, you’re already outside the law-even if the seller is okay with it.

But here’s the flip side: you can buy, sell, and hold crypto as an investment. That’s legal. The government sees it like stocks or gold. You’re not spending it-you’re trading it. This distinction matters because it shapes every rule that follows. The Financial Services Authority (OJK) took full control of crypto regulation on January 10, 2025, replacing BAPPEBTI. That means crypto is now treated like a financial asset, not a commodity. And that changes everything-from licensing to taxes.

Only Use OJK-Licensed Exchanges

You can’t just sign up on Binance, KuCoin, or any foreign platform and call it legal. Indonesia requires all crypto exchanges operating here to be licensed by the OJK. As of June 2025, there are exactly 22 licensed exchanges. The biggest ones are Indodax, Tokocrypto, and Pintu. You can check the full list on ojk.go.id.

These exchanges have to meet tough standards. They need at least IDR 5 billion (around $325,000) in operating capital. They must have ISO/IEC 27001 cybersecurity certification. They track every transaction in real time and report anything over IDR 500 million ($32,500) as suspicious. If they don’t comply, their license gets pulled-fast. In early 2025, seven exchanges were suspended during the transition from BAPPEBTI to OJK oversight.

Using an unlicensed platform means you’re trading illegally. Even if the platform is popular globally, it’s not protected under Indonesian law. If it shuts down or gets hacked, you have no recourse. Your funds are gone. And if the OJK finds out you’re using one, you could face penalties.

The New Tax System: 0.21% or 1%

Taxes changed dramatically on August 1, 2025, with the release of Minister of Finance Regulation No. 50/2025 (PMK 50/2025). The old system, which taxed crypto as a commodity, is gone. Now, crypto is treated like securities. That means no VAT. But there’s a final income tax-and it depends on where you trade.

If you trade on a licensed Indonesian exchange like Indodax or Tokocrypto, you pay 0.21% final income tax (Article 22). That’s automatic. The exchange calculates and withholds it. You don’t need to file anything extra.

If you use a foreign exchange-like Binance, Kraken, or Coinbase-you pay 1%. That’s almost five times higher. And here’s the catch: you’re responsible for reporting it yourself. The government doesn’t automatically know about your foreign trades. But if you don’t report, you’re breaking the law. In April 2025, a survey found 63.2% of Indonesian traders didn’t fully understand how to self-report foreign transactions. One trader in Jakarta lost $2,850 because he thought the 1% tax was optional.

The government is watching. All licensed exchanges must connect to the National Single Window (NSW) system and report every transaction. Foreign platforms? They don’t report to Indonesia. But the Directorate General of Taxes (DGT) is building tools to track cross-border activity. Don’t assume you’re invisible.

How to Get Started: The 4-Step Process

To trade legally, you need to follow four steps. It’s not hard, but it takes time. Under the old system, onboarding took 1-2 days. Now, it’s 3-7 business days.

1. Choose a licensed exchange. Pick one from the OJK’s official list. Indodax is the largest, with over 8.7 million users. Tokocrypto and Pintu are also reliable.
2. Submit your documents. You need your KTP (national ID) and NPWP (tax ID). If you don’t have an NPWP, get one from the tax office. You can’t trade without it.
3. Pass the financial literacy test. It’s 15 multiple-choice questions. You need 80% to pass. Topics include volatility, scams, wallet security, and how exchanges work. Most people pass after studying the OJK’s free guide on their Crypto Asset Trading Portal.
4. Link your bank account. Only use banks registered with Bank Indonesia. You’ll need to verify your account details. This is how you deposit rupiah and withdraw profits.

Once you’re verified, you’re good to go. But remember: your account is monitored. If you make a large transfer or trade unusually often, you might get asked to explain. That’s normal.

What Happens If You Don’t Follow the Rules?

The penalties aren’t just fines. They’re real.

If you trade on an unlicensed platform, you’re technically violating the Financial Services Law. The OJK can’t shut down foreign exchanges, but they can warn you. If you’re caught repeatedly, they may flag your name in the national financial database. That could affect your ability to get loans, open bank accounts, or even travel abroad in extreme cases.

If you don’t pay the 1% tax on foreign trades, you’re evading income tax. The DGT has tools to detect unreported crypto income. They cross-reference bank transfers, foreign exchange records, and even social media posts. In 2025, the tax office started auditing 500 high-volume crypto traders per quarter. One case in Surabaya led to a $14,000 back-tax bill plus a 50% penalty.

And if you use crypto to pay for goods or services? That’s a direct violation of Bank Indonesia’s rules. You could face criminal charges under the 2023 Payment Systems Law.

Who’s Trading, and Why?

As of June 2025, Indonesia has 14.3 million active crypto users-nearly 5% of the population. Most are young: 68% are between 18 and 35. Men make up 76% of users. And most live in Java-Jakarta, Bandung, Surabaya.

Why? Because crypto is seen as a way to beat inflation. The rupiah has lost value over the last five years. Crypto offers an alternative store of value. Many also see it as a path to global income-earning in Bitcoin or stablecoins and converting to rupiah when needed.

But the market is slowing. After the August 2025 tax change, domestic trading volume dropped 15.3% in one month. People were confused. Some moved to foreign platforms to avoid the 1% tax. Others just paused trading until they understood the rules.

By Q2 2026, experts expect a recovery. Once people get used to the system, trading will pick up again. The government is already planning for the next phase: taxing staking rewards and possibly allowing stablecoins for cross-border payments.

What’s Coming Next?

The rules aren’t done changing. Two big updates are coming in 2026.

First, starting January 1, 2026, all licensed exchanges must prove they hold enough crypto to cover all user balances. This is called a proof-of-reserves audit. It’s meant to prevent another FTX-style collapse. If an exchange can’t prove it, it loses its license.

Second, the government is talking about allowing certain stablecoins-like USDT or USDC-to be used for cross-border remittances. That’s a big deal. Right now, sending money overseas is expensive and slow. If stablecoins are approved, it could change how Indonesians send money to family abroad.

But there’s still a gray area: decentralized finance (DeFi). Platforms like Uniswap or Aave aren’t licensed. No one knows if they’re legal yet. The OJK hasn’t said. So if you’re using DeFi, you’re taking a risk.

Where to Get Help

The OJK has a free, official portal: portal.lkd.ojk.go.id. It has guides, FAQs, and the list of licensed exchanges. You can also call their 24/7 hotline: +62 21 157 8900. Response time averages 4.7 hours.

For tax help, the Directorate General of Taxes (DGT) released detailed guidelines in August 2025 under PMK-504. It explains how to calculate your 1% tax on foreign trades and how to file it. Most people don’t need an accountant-but if you’re trading over IDR 1 billion ($65,000) per year, it’s worth it.

Don’t rely on Reddit or Telegram for legal advice. Those communities are full of opinions, not law. Stick to official sources.

Final Advice

If you want to trade crypto legally in Indonesia, keep it simple:

• Only use OJK-licensed exchanges
• Always use your NPWP
• Pay the 0.21% tax if you trade locally
• Report and pay 1% if you use foreign platforms
• Never use crypto to pay for goods or services
• Stay updated-rules change fast

This isn’t a loophole. It’s a system. And if you follow it, you’re not just legal-you’re protected. The government wants you to trade. But on their terms. Play by the rules, and you’ll be fine.