Indonesia's financial services authority (OJK) reported that about 72% of the country's licensed cryptocurrency exchanges were still not profitable by the end of 2025, even though the number of cryptocurrency users exceeded 20 million.
The information highlights a structural challenge: A rapidly growing user base is increasingly choosing foreign platforms, leaving domestic exchanges struggling to compete.
Indonesia's cost and liquidity gap
According to OJK data quoted by local media, the total value of cryptocurrency transactions fell to IDR 482.23 trillion (~30 billion dollars) in 2025, down from IDR 650 trillion in 2024. OJK attributed this to Indonesian investors increasingly trading via regional and global platforms instead of national exchanges.
Indodax director William Sutanto said that the outflow is due to traders seeking more favorable conditions abroad.
"The number of crypto users in Indonesia is already large, but the domestic transaction value is not optimal because a significant portion of the activity flows out into the global ecosystem. The market will seek places with more efficient execution and lower costs," said Sutanto.
He pointed to uneven competitive conditions: National exchanges face tax obligations and compliance that foreign platforms serving Indonesian users are not subject to. Indonesian investors can still access foreign exchanges via VPN, and deposits can be made through local banks.
"Foreign exchanges do not have the same tax obligations and compliance requirements as national players, but Indonesian investors can still use them," noted Sutanto.
Indonesian crypto users who spoke with BeInCrypto cited several reasons for preferring foreign platforms: lower costs, faster withdrawals, and ongoing security concerns following Indodax’s hack in 2024. "Local exchanges require a lot of documentation for withdrawals over $1,000. On global exchanges with P2P, it takes under a minute," said one user.
Structural pressures
The Indonesian crypto market underwent a significant change in legislation on January 10, 2025, when oversight shifted from the Commodity Futures Trading Regulatory Authority (Bappebti) to OJK. The authority dissolved the previous exchange monopoly scheme by issuing new licenses. However, with 29 licensed exchanges now competing for a limited domestic market, the pressure on profitability has increased.
In addition, pressure intensifies when global players enter the Indonesian market directly. Robinhood announced in December plans to acquire the Indonesian brokerage PT Buana Capital Sekuritas and licensed crypto trader PT Pedagang Aset Kripto.
Bybit also announced a strategic partnership with the local platform NOBI to launch Bybit Indonesia, while Binance is already present through its subsidiary Tokocrypto. The influx of well-capitalized global competitors further increases pressure on domestic exchanges, which are already struggling with small margins.
In addition to licensed global companies, unauthorized platforms are also draining the market. They are estimated to cost Indonesia between 70 and 110 million dollars in lost tax revenues per year.
Concerns about funds for Indonesian exchanges
The challenges arise at the same time as Indodax itself has become the subject of investigation. OJK is currently investigating reports of about 600 million IDR missing from customer accounts. Although Indodax has explained the losses with external factors such as phishing and social engineering rather than system failures, the case highlights the trust challenges that domestic exchanges must address to retain users.
Sutanto called for uniform enforcement against illegal foreign platforms while building a healthier market in Indonesia, emphasizing that collaboration between authorities and industry players is crucial.