Decoding the Impact: Indonesia's Crypto Sector at Crossroads Ahead of Elections

As Indonesia gears up for its upcoming elections in February, the future of the vibrant crypto sector hangs in the balance, with candidates offering glimpses into their potential policies.

The fate of Indonesia's thriving crypto sector lies in the hands of the upcoming general elections in February, as potential changes in leadership could reshape the regulatory landscape.

Under the current administration led by President Joko Widodo, Indonesia has displayed a notable interest in crypto, culminating in global initiatives and the establishment of the world's first digital asset exchange. However, the stance on the crypto industry may shift depending on the outcome of the elections.

While some leading candidates have not been explicitly vocal about their stance on crypto, scattered remarks provide insights into their potential approaches to the industry.

Presidential and vice-presidential candidates Anies Baswedan and Muhaimin Iskandar, representing the opposition, have not extensively addressed crypto matters. Yet, their plans for policy overhauls could impact the crypto sector indirectly.

In 2022, Muhaimin advocated for taxing crypto transactions to boost state revenues and called for stricter regulations, including supervision by the Financial Services Authority (OJK), which is set to take charge in 2025. The crypto industry hopes this change may alleviate tax burdens for users and exchanges, which they claim have been deterring traders.

Another candidate pair, consisting of presidential hopeful Ganjar Pranowo and his running mate Mahfud MD, has not explicitly discussed crypto during the campaign. However, in 2022, Ganjar, then the governor of Central Java, praised the creativity of non-fungible tokens (NFTs) and acknowledged the importance of tax compliance.

The most outspoken candidate on crypto is Gibran Rakabuming Raka, the controversial running mate of Defense Minister Prabowo Subianto and President Widodo's son. Raka has been a vocal advocate for digitization, particularly blockchain and crypto. In December, he expressed a desire to groom blockchain and crypto experts to elevate Indonesia's tech sector.

Prabowo, in tandem with Raka, has emphasized the need to enhance the supervision of tax compliance among stock and crypto traders to combat tax evasion.

As Indonesia heads toward the polls, the crypto sector remains on alert, with stakeholders closely watching for potential shifts in regulatory attitudes and policies.

(Photo Source / Blockonome)