Indonesia’s Crypto Market: Growth and Future Challenges Ahead

In 2024, Indonesia’s crypto market grew by 335%, reaching 650.6 trillion rupiah ($38.6 billion). Tokocrypto led this growth, achieving a 25% market share. Despite this success, exchanges are looking to adapt to increased volatility and potential regulatory hurdles in 2025. Tokocrypto claims to have achieved profitability amidst market challenges and plans to introduce new services, with future predictions from Bernstein suggesting continued growth for bitcoin.

Indonesia’s crypto market experienced significant growth in 2024, with transaction values surging by 335% annually, amounting to 650.6 trillion rupiah (approximately US$38.6 billion). Tokocrypto, a trading platform under Binance, secured the largest market share, accounting for 25% of trading volume, which was equivalent to US$9.5 billion. Indodax, its main competitor, held 20.5% market share, valued at US$7.9 billion.

In light of rising market volatility and uncertainty expected in 2025, Indonesian crypto exchanges are now strategising to ensure profitability. Although they remain optimistic about the potential of the market, the anticipated challenges include fluctuating regulations, increased taxation, and geopolitical factors, particularly concerns regarding the ongoing trade war initiated by former US President Donald Trump.

As of mid-April, bitcoin prices have decreased to around US$85,000, down from the 2024 peak of US$100,000. Despite this downturn, Tokocrypto announced achieving net profitability last year, claiming to be the first Indonesian crypto exchange to reach this milestone, although confirmation from independent sources remains unavailable. Indodax has not provided any clarification regarding its financial performance.

Tokocrypto’s CEO, Calvin Kizana, credits their financial success to prudent spending and a focus on significant projects, both local and global. The firm employs its own research team to evaluate potential tokens for listing, aiming to sustain high trading volumes despite market challenges. Kizana maintains a positive outlook for the future, indicating plans to unveil a banking-as-a-service product this year.

In January, Bernstein, a wealth management firm, projected a bullish outlook for the cryptocurrency market, predicting that we could enter the “Infinity Age” in 2025, with bitcoin potentially soaring to US$200,000.