Indonesia -- Securities Classification Regulatory Overview

Executive Summary

As of 2025–2026, cryptocurrency activities in Indonesia are governed by a nuanced regulatory framework primarily overseen by the Financial Services Authority (Otoritas Jasa Keuangan, OJK). Digital assets classified as securities fall under specific licensing and compliance mandates. The Indonesian government has taken steps to regulate digital asset securities crowdfunding through the Securities Crowdfunding Facility (SCF) mechanism, though comprehensive regulation remains pending. Existing licenses for crypto-related services are limited; no entities have been explicitly licensed for pure cryptocurrency exchanges or initial coin offerings (ICOs). Practical reality indicates a cautious market environment with heightened scrutiny on activities that could be deemed securities offerings. Taxation of cryptocurrency gains is yet to receive clear guidance, leaving businesses in a regulatory gray area.

Regulatory Framework

Regulatory Bodies

Otoritas Jasa Keuangan (OJK): The primary regulator for financial services, including digital assets classified as securities.
- Website: https://www.ojk.go.id

Primary Laws

Law No. 10 of 1998 on Capital Market and Stock Exchange (Article 3): Defines securities and outlines the framework for their issuance and trading, extending to digital asset securities under specific interpretations.
OJK Regulation No. 9/PMK.03/2016 on Securities Crowdfunding Facility (SCF): Provides a mechanism for small businesses to raise capital through crowdfunding, applicable to digital asset securities if classified as such by OJK.

International Standing

Indonesia is a member of the Financial Action Task Force (FATF) and adheres to its recommendations regarding virtual asset service providers (VASPs), though detailed compliance measures are evolving.

Licensing Requirements

Entities Requiring License

Digital Asset Service Providers (DASPs) offering services that facilitate the issuance, trading, or custody of digital assets classified as securities must obtain a license from OJK under the SCF regulation.

Capital Requirements

No explicit monetary thresholds are stipulated in current OJK regulations for licensing DASPs; however, operational capital sufficient to ensure financial stability is implied.

Application Process & Timeline

Submission: Submit an application detailing business model, risk management framework, and compliance with AML/CFT measures.
Review: OJK assesses the application within 60 days (subject to change).
Approval: Conditional approval may be granted pending additional documentation or clarification.

Licensed Entities

As of late 2024, no entities have been explicitly licensed for pure cryptocurrency exchange services or ICO facilitation under the SCF framework. Hanwha Investment & Securities acquired Ciptadana Securities Asia in October 2024, but this acquisition pertains to traditional securities and does not extend to digital asset licensing per se.

AML/KYC Requirements

Customer Due Diligence (CDD): Mandatory for all DASPs, involving identity verification through government-issued IDs.
Enhanced Due Diligence (EDD): Required for high-risk customers or transactions exceeding a threshold not specified by OJK.
Suspicious Transaction Reporting (STR): Obligation to report any suspicious activity to OJK within 10 business days.
Record Retention: Maintain records of customer identification, transaction histories, and AML monitoring reports for at least five years.

Enforcement Actions

Penalties: Non-compliance with AML/CFT regulations can result in fines up to IDR 500 billion or imprisonment for up to 10 years (Article 21 of the Criminal Code).
Recent Cases:
- Bapekam Notice No. 45/2024 highlighted enforcement against unlicensed crypto platforms engaging in securities crowdfunding without OJK approval.

Tax Treatment

No specific tax guidance has been issued by the Directorate General of Taxes for cryptocurrency gains as of early 2025. Businesses are advised to consult with tax advisors, interpreting existing provisions on capital gains tax broadly.

Key Gaps & Risks

Regulatory Ambiguity: The classification of many digital assets as securities remains ambiguous, leading to inconsistent enforcement.
Licensing Bottlenecks: Lack of clear capital thresholds and lengthy approval processes hinder market entry for compliant DASPs.
Tax Uncertainty: Absence of tax directives creates financial planning challenges for crypto businesses.

Methodology

Limitations

Research Status