The Indonesian Financial Services Authority (OJK) reported that approximately 72% of licensed cryptocurrency exchanges in the country will still be unprofitable by the end of 2025, even though the number of cryptocurrency users has exceeded 20 million.
These numbers highlight structural challenges. That means domestic exchanges are struggling to compete as a rapidly growing user base increasingly favors overseas platforms.
Indonesia’s cost and liquidity gap
According to OJK data cited by local media, the total value of virtual currency transactions fell from 650 trillion rupiah in 2024 to 482.23 trillion rupiah (approximately $30 billion) in 2025. OJK believes this is because Indonesian investors are increasingly trading through regional and global platforms rather than domestic exchanges.
IndoDax CEO William Stunt said the exodus was due to traders seeking more competitive conditions overseas.
“Although the number of cryptocurrency users in Indonesia is already high, domestic transaction volumes are suboptimal as much of the activity flows into the global ecosystem. The market will look for locations with more efficient execution and competitive costs,” Stunt said.
He pointed out that the playing field is not fair. Domestic exchanges are burdened with tax and compliance burdens that foreign platforms serving Indonesian users do not face. Indonesian investors will continue to be able to access overseas exchanges via VPN, and deposits will be processed through local banks.
“Foreign exchanges do not have the same tax and compliance burden as domestic exchanges, but they are still accessible to Indonesian investors,” Stunt noted.
Indonesian crypto users interviewed by BeInCrypto cited lower costs, faster withdrawals, and remaining security concerns after the Indodax hack in 2024 as reasons why they prefer foreign platforms. “On local exchanges, withdrawals of more than $1,000 require so much documentation. On global exchanges, P2P takes less than a minute,” said one user.
structural pressure
Indonesia’s cryptocurrency market underwent major regulatory changes on January 10, 2025, with the transfer of supervision from the Commodity Futures Trading Regulatory Authority (Bappebti) to OJK. Regulators have moved to dismantle the previous single exchange structure by issuing new licenses. But now 29 licensed exchanges are competing for a limited domestic market, increasing pressure on profitability.
The direct entry of global companies into the market is also adding to the pressure. In December, Robinhood announced plans to acquire Indonesian brokerage firm PT Buana Capital Sekuritas and licensed cryptocurrency trader PT Pedagag Aset Kripto.
Bybit also announced a strategic partnership with local platform NOBI to launch Bybit Indonesia, although Binance already operates in Indonesia through its subsidiary Tokocrypto. The influx of well-capitalized global competitors is increasing pressure on domestic exchanges, which are already struggling with low profit margins.
Besides licensed global competitors, unlicensed platforms are also draining the market. It is estimated that these will cost Indonesia between $70 million and $110 million annually in lost tax revenue.
Concerns about trust in Indonesian exchanges
The challenge comes as Indodax itself faces intense scrutiny. OJK is currently investigating reports that around Rp600 million in customer funds are missing. Although Indodax has attributed the losses to external factors such as phishing and social engineering rather than a system breach, the lawsuit highlights the trust issues domestic exchanges must overcome to retain users.
Sutanto called for a consistent crackdown on illegal overseas platforms, alongside efforts to build a healthier domestic ecosystem, adding that cooperation between regulators and industry players is key.
