The Prabowo-Gibran Era: What It Means for Crypto and Blockchain in Indonesia
Tuesday, 22 October 2024Join +6,000 readers who get weekly insights to the Indonesian crypto market
TL;DR:
- The new Prabowo-Gibran government is focused on digitalization, with an emphasis on blockchain, AI, and crypto to prepare Indonesia’s youth for the future.
- Key ministers support blockchain adoption, boosting Indonesia’s economic competitiveness, particularly in sectors like gaming, NFTs, and the creative economy.
- Strong regulatory frameworks and licensed exchanges create a mature crypto ecosystem, but challenges like infrastructure and digital literacy remain.
The crypto industry in Indonesia continues to experience rapid growth, and with the new government led by Prabowo Subianto as President and Gibran Rakabuming Raka as Vice President, there is hope to further strengthen this sector. The government’s focus on digitalization and technological innovation is expected to bring positive changes to the crypto and blockchain ecosystem in Indonesia.
During the Vice Presidential Debate on December 22, 2023, Gibran Rakabuming Raka emphasized the importance of digitalization through the digital downstreaming program. The government plans to prepare Indonesia’s younger generation to master future technologies such as AI, blockchain, and crypto.
“We must have future talents with future skills. For this, we will boost digital downstreaming, preparing young people who are experts in AI, blockchain, robotics, Islamic banking, and crypto,” Gibran said.
This initiative is crucial given the rapid development of technology, particularly in the crypto sector. According to the Chainalysis 2024 report, Indonesia currently ranks third globally in crypto adoption, with over 20.9 million users. However, crypto usage in Indonesia is still dominated by investment speculation, and it needs to be expanded for broader applications in sectors like creative economy, logistics, or public services.
Read more: 6 Reasons Why Crypto Companies Can’t Ignore Indonesia
Crypto and Blockchain Friendly Ministers
The appointment of Irene Umar as Deputy Minister of Creative Economy provides a significant boost to blockchain adoption in Indonesia’s creative sector. Irene, who has extensive experience in blockchain through her company W3GG, views blockchain not just as a technology, but as a means to drive innovation and open new economic opportunities.
“Blockchain is not just about technology; it is a tool to unlock creative potential and financial inclusion,” said Irene.
The blockchain-based creative economy, such as play-to-earn gaming and NFTs, offers opportunities for local developers to expand their markets. The adoption of blockchain in the creative sector is also expected to enhance Indonesia’s competitiveness in the global technology market. Government support for blockchain integration in this sector can accelerate local technological innovation and attract more investment into Indonesia’s creative industries.
Meanwhile, Irene is not the only minister who supports blockchain; Rosan Roeslani, the Minister of Investment and Downstreaming, has long advocated for blockchain as a tool to enhance Indonesia’s economic competitiveness
At the Global Blockchain Investment Summit 2019, Rosan emphasized that countries that adopt blockchain solutions will significantly increase their global competitiveness.
“Companies can truly advance by implementing blockchain solutions in their respective fields. Of course, to achieve future targets, a well-integrated technology strategy is what we need to see our businesses grow,” he said.
In the meantime, Indonesia has successfully developed a regulatory framework that supports the growth of the crypto sector. The Commodity Futures Trading Regulatory Agency (Bappebti) have established clear rules for crypto trading, providing legal certainty for industry players while protecting consumers from potential risks.
The existence of licensed crypto exchanges also indicates that Indonesia’s regulatory environment is mature enough to support the crypto ecosystem. This allows crypto companies and blockchain startups to operate with greater confidence, both in technology development and in attracting foreign investments into Indonesia’s crypto ecosystem.
Read more: Indonesia’s Crypto Regulation: A Full Guide for Companies
Challenges and Potential
Although regulatory and technological developments have helped Indonesia’s crypto ecosystem grow, challenges still need to be addressed. The development of digital infrastructure, especially outside major cities, as well as the acceleration of technological education reform, remains obstacles to be tackled. Additionally, improving digital literacy among the population is crucial to ensure that the adoption of these technologies can be more inclusive.
However, the current growth momentum needs to be maintained. Indonesia is already on the right track to becoming a global leader in crypto and blockchain adoption, and with the right policies, the government can continue to drive innovation and strengthen the national technology ecosystem.
As Indonesia’s crypto landscape continues to evolve under the new government, now is the time to seize the opportunities it presents. Whether you’re looking to innovate, invest, or expand your presence in the Indonesian market, our expertise can help you navigate the regulatory framework and unlock your full potential.
Get in touch with us today and let’s explore how we can help your business thrive in this dynamic ecosystem!