Indonesia’s Crypto Regulation Shift: A New Era for Digital Assets
Table of Contents
- 1. Indonesia’s Crypto Regulation Shift: A New Era for Digital Assets
- 2. OJK’s Role in Shaping the Future of Digital Assets
- 3. What This Means for Indonesia’s Crypto Market
- 4. Indonesia’s financial Sector Embarks on a Transformative Journey with PUVA Derivatives Regulation Shift
- 5. A Seamless Transition to Strengthen Financial Markets
- 6. Bank Indonesia’s Role in Shaping the Future
- 7. Collaboration for a Smooth transition
- 8. Innovation and Growth in the PUVA Derivatives Market
- 9. – How will OJK ensure consumer protection within teh newly regulated digital asset market?
Jakarta - In a landmark move, indonesia has officially transitioned the regulation and supervision of digital financial assets, including cryptocurrencies and financial derivatives, from the Commodity Futures Trading Supervisory Agency (Bappebti) to the Financial Services Authority (OJK) and Bank Indonesia (BI). This shift, marked by the signing of the Minutes of Handover (BAST) and Memorandum of Understanding (NK) on January 10, 2025, signals a new chapter in the nation’s financial landscape.
Minister of trade Budi Santoso emphasized that this transition aims to provide legal certainty and stability for the digital financial sector. “We believe this step will bring long-term benefits to the financial sector and the physical market for crypto assets in Indonesia,” Budi stated during the declaration. The Ministry of Trade has pledged its full support to ensure the process remains transparent and secure for all market participants.
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The transfer of responsibilities includes Digital Financial Assets (AKD),such as cryptocurrencies and financial derivatives in the capital market,now under OJK’s purview. meanwhile, Bank Indonesia will oversee financial derivatives tied to instruments in the Money Market and Foreign Exchange Market (PUVA). This realignment aligns with Article 8, Number 4, and Article 312, Paragraph (1) of Law Number 4 of 2023, also known as the Growth and Strengthening of the Financial Sector (UU P2SK).
Government Regulation Number 49 of 2024 mandates this transition, with a full implementation period of 24 months following the enactment of the P2SK Law. The process involves extensive coordination among OJK, Bank Indonesia, and the ministry of Trade to ensure regulatory readiness, supervisory infrastructure, and public literacy initiatives are in place. “These three institutions continue to coordinate in regulatory aspects, preparing supervisory infrastructure, and increasing public awareness,” Budi added.
OJK’s Role in Shaping the Future of Digital Assets
In planning for its expanded role, OJK has introduced Financial Services Authority Regulation (POJK) Number 27 of 2024, which outlines the implementation of trading in digital financial assets, including cryptocurrencies.Additionally, the Financial Services Authority Circular letter (SEOJK) Number 20/SEOJK.07/2024 provides further guidance on these regulations.
Mahendra siregar, Chairman of the OJK Board of Commissioners, highlighted the authority’s commitment to fostering a balanced regulatory surroundings. “Apart from accepting the transfer of AKD AK’s duties, OJK will also oversee financial derivative instruments with underlying effects, such as stock indices and foreign single shares,” Siregar explained. The goal is to apply the principles of “same activity, same risk, and equal regulation,” ensuring a level playing field for all market participants.
What This Means for Indonesia’s Crypto Market
This regulatory shift underscores Indonesia’s commitment to integrating digital assets into its financial ecosystem while safeguarding market integrity. By transferring oversight to OJK and Bank Indonesia, the government aims to enhance openness, reduce risks, and promote innovation in the crypto space. for investors and businesses, this move provides a clearer framework for navigating the evolving landscape of digital finance.
As the transition unfolds over the next two years,stakeholders can expect ongoing updates and refinements to the regulatory framework. for now, the focus remains on ensuring a smooth handover and fostering a secure, inclusive environment for digital asset trading in Indonesia.
Indonesia’s financial Sector Embarks on a Transformative Journey with PUVA Derivatives Regulation Shift
In a bold move to bolster financial stability and foster deeper integration within its markets, Indonesia is undergoing a meaningful regulatory transition. The responsibility for overseeing financial derivatives,including those tied to securities and digital assets like cryptocurrencies,is shifting from the Commodity Futures Trading Regulatory Agency (Bappebti) to Bank Indonesia (BI). This change aims to streamline oversight, enhance market credibility, and ensure consumer protection in the rapidly evolving financial landscape.
A Seamless Transition to Strengthen Financial Markets
The transition is designed to avoid market disruptions while maintaining public trust. As Mahendra, a key figure in the process, stated, “The financial derivatives industry with underlying securities and Digital Financial Assets, including crypto assets, which is supervised by Bappebti, has been running smoothly. Efforts will be made to transition regulatory and supervisory duties seamlessly to avoid market turmoil.”
To facilitate this shift,the Financial services Authority (OJK) has introduced a digital licensing system for financial derivatives through the integrated Licensing and Registration System (SPRINT). This system ensures that the transition is efficient and transparent, with OJK and CoFTRA working in tandem to support the broader financial derivatives ecosystem.
Bank Indonesia’s Role in Shaping the Future
Bank Indonesia is stepping into a new role with the regulation and supervision of PUVA (Money Market and Foreign Exchange Market) Derivatives. This move aligns with the mandates outlined in Law Number 4 of 2023, which focuses on the development and strengthening of the financial sector. BI has already issued Regulation No. 6 of 2024 to govern these markets, ensuring a robust framework for derivatives tied to money and foreign exchange instruments.
Destry Damayanti,Senior Deputy Governor of Bank Indonesia,emphasized the importance of this transition. “The huge potential of the PUVA derivatives market can be utilized as an alternative hedging instrument, which ultimately contributes positively to the deepening of PUVA and supports stability amidst the current high level of global uncertainty,” she said.”With strong efforts and synergy, the Indonesian financial market will become deeper, more credible, and support joint steps towards a Golden Indonesia 2045.”
Collaboration for a Smooth transition
To ensure the transition is seamless, BI is collaborating closely with CoFTRA and OJK. Existing PUVA derivative permits issued by Bappebti will remain valid, and current reporting procedures will continue until BI introduces new systems. A dedicated Working group has also been established to oversee the process and address any challenges that may arise.
Innovation and Growth in the PUVA Derivatives Market
The future of indonesia’s financial markets looks promising, with a focus on innovation and infrastructure development. The PUVA derivatives market will see the introduction of diverse, liquid products with efficient pricing mechanisms. These efforts will be supported by infrastructure that adheres to the principles of interconnection, interoperability, and integration (3I), ensuring reliability, efficiency, and security.
As Indonesia navigates this transformative period, the collaboration between regulatory bodies and the commitment to innovation will play a pivotal role in shaping a resilient and dynamic financial ecosystem. The transition not only strengthens the nation’s financial markets but also positions Indonesia as a credible player on the global stage.
– How will OJK ensure consumer protection within teh newly regulated digital asset market?
Interview with Mahendra Siregar, Chairman of the OJK Board of Commissioners, on Indonesia’s Crypto regulation Shift
By Archyde News
Archyde News: Thank you for joining us today, Mr. Siregar. Indonesia’s recent regulatory shift in the digital asset space has garnered significant attention.Can you provide an overview of what this transition entails and why it’s so pivotal for the country’s financial ecosystem?
Mahendra Siregar: Thank you for having me.This transition marks a significant milestone for Indonesia’s financial sector.The responsibility for overseeing digital financial assets, including cryptocurrencies and financial derivatives, has shifted from Bappebti to the Financial Services Authority (OJK) and Bank Indonesia (BI). This realignment is designed to streamline oversight, enhance market credibility, and ensure consumer protection. By consolidating regulatory authority under OJK and BI, we aim to create a more cohesive and secure environment for digital asset trading, which is crucial as these assets become increasingly integrated into our financial system.
Archyde News: What specific changes can market participants expect as a result of this regulatory shift?
Mahendra Siregar: Market participants can expect a more structured and transparent regulatory framework. OJK has already introduced Financial Services Authority Regulation (POJK) Number 27 of 2024, which outlines the implementation of trading in digital financial assets, including cryptocurrencies. Additionally, we’ve issued a Financial Services Authority Circular Letter (SEOJK) Number 20/SEOJK.07/2024 to provide further guidance. These regulations aim to ensure that all market activities are conducted with the same level of scrutiny and risk management, adhering to the principle of “same activity, same risk, and equal regulation.”
Archyde News: How will this transition impact investors and businesses operating in Indonesia’s crypto market?
Mahendra Siregar: For investors and businesses, this transition provides much-needed clarity and legal certainty.By transferring oversight to OJK and BI, we’re creating a more robust framework that reduces risks and promotes innovation. Investors can feel more confident knowing that their activities are backed by a regulatory body with a strong track record of oversight.Businesses, on the other hand, will benefit from a more predictable regulatory environment, which is essential for fostering growth and attracting investment.
Archyde News: The transition period is set to last 24 months. What steps are being taken to ensure a smooth handover and minimize disruptions?
Mahendra Siregar: Ensuring a smooth transition is our top priority. We’re working closely with Bank Indonesia and the Ministry of Trade to coordinate regulatory aspects, prepare supervisory infrastructure, and increase public awareness.This includes extensive training programs for stakeholders, public literacy initiatives, and the growth of robust supervisory mechanisms. Our goal is to make this transition as seamless as possible, ensuring that market participants can continue their operations without significant disruptions.
Archyde News: What role does public awareness and education play in this transition, and how is OJK addressing this?
Mahendra Siregar: Public awareness and education are critical components of this transition. As digital assets become more mainstream, it’s essential that investors and the general public understand the risks and opportunities associated with these assets. OJK is committed to increasing public literacy through various initiatives, including educational campaigns, workshops, and online resources. We want to empower individuals to make informed decisions and ensure that they are aware of the regulatory protections in place.
Archyde News: Looking ahead, what are your long-term goals for Indonesia’s digital asset market under OJK’s oversight?
Mahendra Siregar: Our long-term goal is to create a secure, inclusive, and innovative digital asset market that contributes to the overall stability and growth of Indonesia’s financial sector. We aim to foster an environment where digital assets can thrive while ensuring that market integrity and consumer protection remain paramount. By aligning our regulatory framework with international best practices, we hope to position Indonesia as a leader in the digital finance space, attracting both domestic and international investors.
Archyde News: what message would you like to convey to stakeholders as they navigate this new regulatory landscape?
Mahendra Siregar: My message to stakeholders is one of collaboration and confidence. This transition is a collective effort,and we’re committed to working closely with all parties to ensure its success. We encourage market participants to engage with us, provide feedback, and take advantage of the resources we’re making available. Together, we can build a digital asset market that is not only robust and secure but also inclusive and innovative, benefiting all Indonesians.
Archyde News: Thank you, Mr. Siregar, for your insights and for shedding light on this transformative journey for Indonesia’s financial sector.
Mahendra Siregar: Thank you. It’s an exciting time for Indonesia, and I’m confident that this regulatory shift will pave the way for a brighter future in digital finance.
This interview has been edited for clarity and length. For more updates on indonesia’s financial regulations and digital asset market, stay tuned to Archyde News.
