CoinMarketCap gives an over for crypto enthusiasts looking to purchase cryptocurrency in Indonesia.
The adoption of cryptocurrencies and blockchain technologies is now a global phenomenon, with Indonesia set to become a major player in the crypto space in Asia. In 2018, the Ministry of Trade judged that Bitcoin (BTC) and other crypto assets are legal, classifying them as commodities.
Since then, Indonesia has continued to introduce new, tailored regulations, providing more clarity and supporting citizens who wish to invest in and trade crypto. The Futures Exchange Supervisory Board, also known as Bappebti, regulates crypto in Indonesia. Bappebti has introduced a series of regulatory measures since 2019, including the issuance of licenses for crypto futures exchanges.
Indonesia is also home to several crypto businesses and exchanges, including Indodax and Binance-backed Tokocrypto. A 2020 report by the Blockchain Association of Indonesia revealed that there were over 1.5 million traders in the country, representing a 2263% increase since 2015. This is a clear indication of the extent to which interest in crypto has grown among Indonesians in recent years. It thus comes as no surprise that there are multiple options available for those Indonesian residents who are interested in getting involved with crypto.
Before you buy crypto assets in Indonesia, you need to know a few key things. Crypto assets are defined as commodities and are not recognized as legal tender by the Bank of Indonesia. This means that crypto is limited to trading activities and cannot be used to make payments for goods and services.
This following uide will provide an overview of how to buy cryptocurrency in Indonesia.
Buying Crypto in Indonesia
Buying crypto in Indonesia is relatively easy and completely legal. First, you will need to register with a brokerage, app or exchange and complete a Know Your Customer (KYC) process.
What Is Required to Buy Cryptocurrency in Indonesia?
- A national identity card (KTP) or other acceptable ID for the KYC process.
- A private and secure internet connection, since public WiFi may pose security problems.
- An account at an exchange or brokerage that is permitted for use in Indonesia.
- A cell phone to verify your identity using two-factor authentication (2FA).
- A bank account you can use to make fiat currency (Indonesian rupiah) deposits to purchase cryptocurrencies with.
- A crypto wallet to store crypto assets. Most exchanges offer in-built wallets, but it is better to use a cold wallet for additional security.
Steps to Buy Cryptocurrency in Indonesia
Once you have all the above to hand, you’re ready to make your first crypto purchase in Indonesia.
1. Create an account with an exchange
You first need to register and open an account with an exchange, such as Binance, Indodax or Upbit. The registration process is relatively easy and involves providing your full name and email address, as well as accepting the platform’s terms of use and privacy policy.
Most exchanges in Indonesia are available via web or mobile applications. The latter can be downloaded via the Google Play Store and the Apple App Store.
2. Complete the KYC verification phase
After opening an account, the user must complete KYC verification. Without passing this step, users cannot make any transactions. KYC verification is an important process intended to ensure that Anti-Money Laundering (AML) policies are implemented. The KYC verification process involves uploading proof of identity — such as your KTP — providing proof of address, and uploading a selfie.
It's not uncommon for verification to fail. During verification, make sure that you don't already have an existing account on the exchange, provide correct and accurate personal data, and only upload photos that match your KTP.
Your KTP must be original and all details must be clear and visible when uploading a copy. When taking pictures, make sure your face is clearly visible. Don’t wear glasses or a hat. KYC data processing typically takes at least one working day.
3. Make a fiat deposit
After passing verification, the next step is to make a fiat deposit that you can then use to buy cryptocurrency. All registered exchanges in Indonesia accept the local fiat currency rupiah (IDR). Rupiah deposits are sent to a specific fiat wallet on the platform and this is then used to buy Bitcoin (BTC) or other crypto assets.
In general, minimum deposits start from Rp 30,000 to Rp 50,000. However, some exchanges ask for a minimum deposit of Rp 500,000.
Some of the deposit methods supported by exchanges are:
- Bank transfer
- E-wallet (OVO, GoPay, ShoppePay)
- PPOB (e.g., Alfamart)
- Credit or debit card (overseas exchanges only)
Please research each method before making a deposit, as some are subject to a deposit fee.
4. Buy cryptocurrency
Once your rupiah deposit is confirmed, the next step is to place an order for the cryptocurrency of your choice. On most exchanges, the procedure is simple. You select the coin you want to buy, input an amount in IDR and ensure that you have the sufficient IDR balance in your fiat wallet.
Preview the purchase to check the price and if you are satisfied with the details, click buy to complete the transaction. Once completed, the amount of crypto purchased will be reflected in the exchange's inbuilt wallet. You can then transfer the crypto to an external hot or cold wallet if you wish.
How to Buy Bitcoin in Indonesia
All exchanges in Indonesia support Bitcoin (BTC) and allow users to buy fractions of the token. The process of buying Bitcoin in Indonesia is the same as mentioned above. There is also a single Bitcoin ATM in the capital, Jakarta, where investors can buy Bitcoin.
How to Buy Ether in Indonesia
Ether (ETH) is currently the second-largest cryptocurrency by market cap and is supported by most exchanges in Indonesia. You’ll also be able to purchase fractions of one Ether from these exchanges, which is useful given that one ETH is currently worth thousands of dollars.
Conclusion
Buying cryptocurrencies in Indonesia may seem complicated for crypto beginners. However, this guide has hopefully broken down the process and outlined the straightforward steps you’ll need to take in order to buy crypto assets. Indonesia continues to expand its legal framework for cryptocurrencies. If the country were to proceed to modify the current classification of crypto assets from commodities to digital assets, this would make crypto acceptable as a form of payment and would significantly boost adoption.
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