Indonesia’s Financial Services Authority (OJK) reported that approximately 72% of licensed crypto exchanges in the country remained unprofitable as of the end of 2025, even as the number of crypto users surpassed 20 million.
The figures highlight a structural challenge: a booming user base that increasingly prefers overseas platforms, leaving domestic exchanges struggling to compete.
Indonesia’s Cost and Liquidity Gap
According to OJK data cited by local media, the total value of crypto transactions fell to IDR 482.23 trillion (~$30 billion) in 2025, down from IDR 650 trillion in 2024. OJK attributed this to Indonesian investors increasingly trading through regional and global platforms rather than domestic exchanges.
Indodax CEO William Sutanto said the outflow stems from traders seeking more competitive conditions abroad.
“The number of crypto users in Indonesia is already large, but domestic transaction value isn’t optimal because much of the activity flows into the global ecosystem. The market will look for places with more efficient execution and competitive costs,” Sutanto said.
He pointed to an uneven playing field: domestic exchanges bear tax and compliance burdens that foreign platforms serving Indonesian users do not face. Indonesian investors can still access overseas exchanges via VPN, with deposits processed through local banks.
“Foreign exchanges don’t have the same tax and compliance burdens as domestic players, but they can still be accessed by Indonesian investors,” Sutanto noted.
Indonesian crypto users speaking to BeInCrypto cited multiple reasons for preferring overseas platforms: lower costs, faster withdrawals, and lingering security concerns after Indodax’s 2024 hack. “Local exchanges ask for so much paperwork for withdrawals over $1,000. With P2P on global exchanges, it takes less than a minute,” one user said.
Structural Pressures
The Indonesian crypto market underwent a major regulatory shift on January 10, 2025, when oversight transferred from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK. The regulator moved to break up the previous single-exchange structure by issuing new licenses. However, with 29 licensed exchanges now competing for a limited domestic market, profitability pressures have intensified.
Adding to the pressure, global players are entering the market directly. Robinhood announced plans in December to acquire Indonesian brokerage PT Buana Capital Sekuritas and licensed crypto trader PT Pedagang Aset Kripto.
Bybit also announced a strategic partnership with the local platform NOBI to launch Bybit Indonesia, while Binance already operates in Indonesia through its subsidiary, Tokocrypto. The influx of well-capitalized global competitors is intensifying pressure on domestic exchanges, which are already struggling with thin margins.
Beyond licensed global competitors, unlicensed platforms also drain the market. They are estimated to cost Indonesia $70–110 million in lost tax revenue annually.
Trust Concerns for Indonesian Exchanges
The challenges come as Indodax itself faces scrutiny. OJK is currently investigating reports of approximately IDR 600 million in missing customer funds. While Indodax has attributed the losses to external factors such as phishing and social engineering rather than system breaches, the case highlights the trust issues domestic exchanges must overcome to retain users.
Sutanto called for consistent enforcement against illegal foreign platforms alongside efforts to build a healthier domestic ecosystem, adding that collaboration between regulators and industry players is key.
