Majority of Indonesian Crypto Exchanges Struggle Financially Despite Growing User Base

Profitability Challenges for Indonesian Crypto Exchanges

According to Indonesia's Financial Services Authority (OJK), about 72% of licensed crypto exchanges in the country are not profitable as of late 2025, despite the user base exceeding 20 million.

This situation underscores a significant issue: while the user base expands, many prefer international platforms, leaving local exchanges at a disadvantage.

Cost and Liquidity Disparities

OJK data reveal that the total crypto transaction value in Indonesia dropped to IDR 482.23 trillion (~$30 billion) in 2025 from IDR 650 trillion in 2024, as more Indonesian investors choose foreign platforms over domestic ones.

Indodax CEO William Sutanto explains this trend is driven by traders seeking more favorable conditions abroad, highlighting the challenges faced by domestic exchanges in competing with international counterparts.

"The number of crypto users in Indonesia is already large, but domestic transaction value isn’t optimal because much of the activity flows into the global ecosystem," Sutanto remarked.

Domestic exchanges are burdened with taxes and compliance requirements not faced by foreign platforms, making it easier for Indonesian investors to access overseas exchanges via VPN and local bank deposits.

"Foreign exchanges don’t have the same tax and compliance burdens as domestic players, but they can still be accessed by Indonesian investors," Sutanto noted.

Users cite lower costs, faster withdrawals, and security concerns as reasons for favoring international platforms.

Intensified Competition

The regulatory landscape shifted in January 2025 when oversight moved from Bappebti to OJK, introducing new licenses and increasing competition among 29 licensed exchanges. Meanwhile, global players like Robinhood and Bybit are entering the market, further pressuring domestic exchanges.

Unlicensed platforms continue to siphon off market activity, costing Indonesia an estimated $70–110 million annually in lost tax revenue.

Trust Issues

Indodax, a prominent local exchange, faces scrutiny due to reports of missing customer funds, which has exacerbated trust issues. The OJK investigation highlights the necessity for domestic exchanges to address security and trust to retain users.

Sutanto emphasized the need for consistent enforcement against illegal platforms and collaboration between regulators and industry players to foster a robust domestic ecosystem.