From Bitcoin to PEPE: Indonesian Cults Transforming the Crypto Scene

TL;DR

1. Indonesia’s crypto market is booming, led by Millennials and Gen Z.
2. Young, tech-savvy investors use social media for insights, but financial literacy needs work.
3. Supportive regulations boost opportunities for growth in this dynamic space

The crypto market in Indonesia has experienced rapid growth, with total transactions between January and September reaching Rp426.69 trillion, up 351.97 percent compared to the same period in 2023, which was Rp94.41 trillion. 

Crypto assets such as Bitcoin, USDT, Solana (SOL), and PEPE dominate transaction volumes. The wide range of assets investors are engaging with highlights the evolving behavior of Indonesia’s crypto community. 

According to Yudhono Rawis, Deputy Chair of the Indonesian Crypto Asset & Blockchain Traders Association (Aspakrindo-ABI), investors are becoming more sophisticated and are willing to explore new opportunities. “Today’s investors are not only seeking safety in established assets but are also exploring high-growth assets like PEPE,” explained Rawis.

Read more: Indonesia Ranks 3rd in Global Crypto Adoption 2024

The Role of Millennials and Gen Z in Crypto Growth

One of the key drivers of this market expansion is the involvement of Millennials and Gen Z, who now dominate the Indonesian crypto investment space. As of September 2024, these two groups made up 60% of Indonesia’s 21.27 million crypto investors, with 26.9% of them aged 18-24 and 35.1% aged 25-30.

The Indonesia Millennial and Gen Z Report 2024 by IDN Media found that 38% of Millennials and 41% of Gen Z in Indonesia actively manage their monthly budgets, allocating a significant portion to investments, including crypto.

But why are Millennials and Gen Z so attracted to crypto? Growing up in a digital-first world, this generation is more comfortable adopting new technologies like blockchain. 

According to Kasan, Head of Bappebti (Commodity Futures Trading Supervisory Agency), the younger generation views crypto not just as a modern investment but also as an alternative to traditional financial systems, which they often find lacking in flexibility and innovation. 

“The younger generation tends to favor digital assets because they are already familiar with technology and are becoming increasingly disillusioned with conventional financial institutions,” Kasan noted.

Read more: Indonesia Emerges as a Top 3 AI Crypto Players in Southeast Asia

Social Media and Financial Literacy: Key Factors in Adoption

Another interesting dynamic shaping crypto adoption in Indonesia is how Millennials and Gen Z are utilizing social media and online communities to inform their investment decisions. As digital natives, they are adept at using platforms to track trends, discuss investment strategies, and predict market movements. Tokocrypto’s Chief Marketing Officer, Wan Iqbal, explained, “They rely on social media and online communities to discuss and predict crypto movements, which makes them more confident in their investment decisions.”

Despite their enthusiasm, financial literacy remains an area of concern, especially for Gen Z. According to the 2024 National Survey of Financial Literacy and Inclusion (SNLIK) from the Financial Services Authority (OJK), financial literacy among Gen Z aged 15-17 years remains relatively low, at 51.70%. 

Recognizing this gap, both industry leaders and the government are taking proactive steps to enhance education. For instance, Aspakrindo-ABI launched the 2024 Crypto Literacy Month, an initiative aimed at educating young investors about the risks and rewards of crypto investment.

Crypto’s Expanding Role in Indonesia’s Financial Ecosystem

Beyond individual adoption, crypto is increasingly being integrated into Indonesia’s broader financial ecosystem. Between January and July 2024, the country collected IDR 371.28 billion in taxes from crypto transactions, contributing to total tax revenues of IDR 838.56 billion since January 2022. This rise in tax revenue signals that crypto is gaining acceptance as a legitimate and important component of the national economy.

Kasan from Bappebti emphasized that supportive government regulations have played a crucial role in driving this growth. Clear legal frameworks and investor protections have empowered more Indonesians to engage in the crypto market, further solidifying its place as a promising investment avenue. 

Read more: Why Indonesia is Southeast Asia’s Top Crypto Destination

What’s Next for Crypto in Indonesia?

The rapid expansion of Indonesia’s crypto market, driven largely by Millennials and Gen Z, highlights the immense potential for further growth. With crypto transaction values reaching IDR 426.69 trillion by September 2024, the market shows no signs of slowing down. The combination of rising digital adoption, economic pressures, and increasing financial literacy suggests that crypto will continue to play a key role in shaping the future of finance in Indonesia.

For businesses eyeing opportunities in this thriving market, now is the perfect time to explore Indonesia’s crypto landscape. With supportive regulations and a rapidly growing user base, Indonesia offers significant potential for growth and expansion in the digital finance space. 
Partner with ICN to navigate Indonesia’s crypto market successfully. Ready to tap in? Book a call today and explore your business’s potential in this dynamic space