Indonesia, a trillion-dollar economy, cannot be ignored. Defense Minister Prabowo Subianto, as well as governors Anies Baswedan and Ganjar Pranowo, competed against each other for the post in the election Wednesday.
In December, Indonesia’s vice presidential candidate, Mayor Gibran Rakabuming Raka, said he intended to accelerate the country’s position as a leader in the digital revolution by spreading expertise in cryptocurrencies and blockchain.
“We are preparing blockchain experts, we are preparing cybersecurity experts, we are preparing crypto experts,” said young Mayor Rakabuming Raka, son of President Joko Widodo, at an event last December 10.
However, Prabowo Subianto is gaining popularity in Indonesia’s Wednesday elections, suggesting that the Joko Widodo era is coming to an end. Indonesia, the world’s largest Muslim-majority country, has banned the use of cryptocurrencies as a means of payment. The country does, however, allow investment in digital assets.
Min Cho CEO and co-founder of Beoble, a Web3 messaging platform based in Asia, says Indonesians are uniquely interested in cryptocurrencies, with more than 14 million of them actively trading, surpassing typical stock market investors.
This not only demonstrates the nation‘s digital skills and entrepreneurial spirit, but also highlights efforts to make financial services available to the unbanked population. Min Cho said: “Even with regulatory uncertainty, this trend reflects a broader movement in Asia toward the adoption of decentralized financial systems, showing that neither the Indonesian economy nor private people have been deterred from discovering the potential of digital currencies.”
According to a report by local news service Kontant, the Indonesian government reported a significant drop in cryptocurrency tax revenue in January to $31.7 million (467.27 billion Indonesian rupiah) in 2023.
This is a sharp decline of 63 percent from the partial collection period that began in 2022, when the cryptocurrency tax system was introduced. One of many new “digital economy” taxes was introduced in 2022 as part of Indonesia’s tax reform. The government said the tax reform will “improve tax collection” and lead to a “healthy and fair tax system.”