The Financial Services Authority of Indonesia (OJK) announced that as of the end of 2025, about 72% of licensed cryptocurrency exchanges in the country are still not generating profits. Despite the number of cryptocurrency users in Indonesia surpassing 20 million, this trend continues.
This figure reveals a structural problem. The user base is growing rapidly, but an increasing number of people prefer overseas platforms, making it difficult for domestic exchanges to compete.
Differences in costs and liquidity in Indonesia
According to OJK data cited by local media, the total cryptocurrency transaction volume in 2025 is expected to be about 482 trillion 230 billion rupiah (approximately $30 billion), a decrease from 650 trillion rupiah in 2024. OJK explained that Indonesian investors are increasingly trading on regional and global platforms instead of domestic exchanges.
Indodax CEO William Sutanto mentioned that this outflow of funds is due to investors seeking more competitive trading conditions abroad.
"The number of cryptocurrency users in Indonesia is already significant. However, transaction volumes are not optimized. A considerable portion of transactions is flowing to global markets. The market seeks places where more efficient trading and reasonable costs are possible." – William Sutanto, CEO of Indodax
CEO Sutanto pointed out that domestic exchanges bear the burden of tax and regulatory compliance, while overseas platforms have no such obligations. Indonesian investors can still access overseas exchanges using VPNs and make deposits through local banks.
"Overseas exchanges do not have the same tax and regulatory burdens as domestic operators. However, Indonesian investors can still access them." – William Sutanto, CEO of Indodax
Indonesian cryptocurrency users interviewed by BeInCrypto cited various reasons for preferring overseas platforms, including lower fees, faster withdrawals, and lingering security concerns following the Indodax hack in 2024. One user said, "Withdrawing more than $1,000 from local exchanges requires too much paperwork. P2P trading on global exchanges takes less than a minute."
Structural pressure
The Indonesian cryptocurrency market underwent significant regulatory changes on January 10, 2025, when supervisory duties were transferred from the Commodity Futures Trading Supervisory Agency (Bappebti) to OJK. OJK dismantled the existing single exchange structure and granted new licenses. However, with 29 licensed exchanges competing in a limited domestic market, profitability pressures are intensifying.
In addition, global companies are also entering the market directly. Robinhood announced plans to acquire Indonesian securities firm PT Buana Capital Sekuritas and cryptocurrency trading firm PT Pedagang Aset Kripto in December.
Bybit is also set to establish Bybit Indonesia in a strategic partnership with local exchange NOBI. Binance has already entered Indonesia through its subsidiary Tokocrypto. The influx of globally competitive players with sufficient capital is further exacerbating the burden on domestic exchanges that are already struggling with low margins.
In addition to licensed global competitors, unlicensed platforms are also encroaching on the market. As a result, Indonesia is estimated to lose between $70 million and $110 million in tax revenue annually.
Concerns about trust in Indonesian exchanges
These challenges are becoming more pronounced as Indodax itself is under investigation. OJK is currently investigating a case of missing Indodax customer funds amounting to approximately 600 million rupiah. Indodax stated that the losses were due to external factors such as phishing or social engineering attacks rather than hacking or system breaches, but this case highlights the need for domestic exchanges to regain trust in order to retain users.
CEO Sutanto emphasized the need for consistent crackdowns on illegal overseas platforms alongside the creation of a healthy domestic ecosystem. He added that collaboration between regulators and the industry is key.