The growing interest in digital assets in Indonesia opens up vast opportunities for companies looking to operate with cryptocurrency in the country. However, to ensure legal and successful business operations, companies must obtain a cryptocurrency license. This article provides a detailed overview of the licensing process, key requirements and restrictions, with special attention to the rules concerning foreign investors.
As of January 10, 2025, the regulatory authority over Indonesia’s cryptocurrency industry has officially shifted from the Commodity Futures Trading Regulatory Agency (BAPPEBTI) to the Financial Services Authority (OJK). OJK is now responsible for licensing market participants, overseeing KYC/AML compliance, protecting consumer rights, and supervising the overall digital financial asset trade, including cryptocurrencies.
It’s important to note that cryptocurrency is not recognized as legal tender in Indonesia — the only official currency remains the Indonesian Rupiah (IDR). Crypto is permitted solely as a tradable commodity for investment and trading purposes.
As of January 2025, crypto companies in Indonesia must be licensed and regulated by OJK. To obtain a license to operate with digital assets, companies must meet several mandatory criteria:
1. Incorporation in Indonesia
The company must be registered as a local legal entity (PT) in Indonesia. However, foreign individuals may invest and hold shares in the company.
2. Minimum capital requirements
OJK imposes strict capital thresholds. For digital asset service providers, the minimum paid-up capital is IDR 100 billion, which must be deposited in a local bank account.
3. Infrastructure and IT security
The company must submit technical documentation demonstrating the security and reliability of its platform for processing digital asset transactions. This includes user data protection, system resilience, and defense against cyberattacks.
4. KYC, AML, and CFT compliance
Companies must implement robust Know Your Customer (KYC) procedures, Anti-Money Laundering (AML), and Counter-Terrorism Financing (CFT) standards. A monitoring and reporting system for suspicious transactions must be in place.
5. Mandatory reporting and audit
Licensed companies must submit regular reports to OJK, including financial statements, operational updates, and compliance reviews. External audits are also required.
6. Local office and Indonesian team
The company must maintain a physical office in Indonesia and employ a team primarily composed of Indonesian citizens.
As of late 2024, BAPPEBTI reported that 28 companies had obtained licenses to operate in the crypto sector. These firms are authorized to provide digital asset trading services, including buying, selling, and storing cryptocurrencies.
Key players in the market include Indodax, Tokocrypto, and Pintu. These platforms offer a wide range of services to local users, including support for IDR and integration with Indonesian banks.
Starting in 2025, the licensing process is overseen by OJK and consists of the following stages:
1. Company registration
Establish a local company (PT) with shareholders and directors who are Indonesian citizens. Prove the minimum capital requirement and open a corporate bank account.
2. Document preparation
Your application must include:
✓ A business plan outlining your services
✓ Company structure and management details
✓ Financial statements
✓ Platform technical documentation
✓ KYC/AML and internal control policies
3. Application submission to OJK
Submit your license application to OJK, which will conduct a preliminary review of all submitted materials.
4. Evaluation and compliance check
OJK will carry out a comprehensive audit of your corporate structure, IT infrastructure, financial standing, security protocols, and compliance with KYC/AML/CFT regulations.
5. License issuance and business launch
If the company passes all inspections, OJK grants the license, enabling it to legally conduct crypto-related business in Indonesia.
There are significant restrictions for foreign citizens and companies wishing to enter the Indonesian cryptocurrency market. According to Indonesian law:
1. Only Indonesian citizens can own crypto companies directly
According to current regulations, licensed crypto firms must be 100% Indonesian-owned. All shareholders and board members must be Indonesian citizens. Foreign individuals and entities cannot directly own or control such companies.
2. Foreign investment allowed only through partnerships
Foreign investors can participate in Indonesian crypto projects only via partnerships with local entities. These may involve consulting, technical support, technology licensing, or minority ownership in adjacent areas (e.g., marketing or analytics). However, the crypto core business must remain under local control.
3. Physical presence and local staffing required
Companies must maintain a real office in Indonesia and hire staff — especially technical and operational personnel — who are mostly Indonesian citizens. Managing operations remotely from abroad is not allowed.
4. All transactions must be in Indonesian Rupiah (IDR)
Regardless of investor structure, all client payments within Indonesia must be made in Rupiah. Crypto or foreign currencies may not be used as payment methods.
A crypto license in Indonesia offers exciting opportunities to operate in a fast-growing market. However, the licensing process is complex, especially for foreign entities.
If you’re looking to launch a crypto business in Indonesia, careful preparation is crucial. Our consulting firm, Good Luck Group, is here to assist you throughout the licensing process — from business registration to compliance and legal advisory. Contact us today, and let us help you enter Indonesia’s promising digital asset market with confidence.
