Indonesia has a key potential to revolutionize cryptographic industry if it adopts solutions aligned with the country’s cultural and ethical values.
Opinion of: Mohammed Alkaff Alhashmi, co-founder of Haqq Network.
The world now adopts the evolution of web3. Meanwhile, in Indonesia, there is nothing less than a web3 revolution that takes place. With its remarkable level of adoption of crypto, a young population informed of technology and a regulatory environment of support, Indonesia should become a world leader in web3 innovation in the years to come. As the local market develops, however, more solutions must be found which align with the unique cultural and ethical values of the Indonesian population.
In number revolution
Indonesia has some of the most substantial growth figures on the world’s cryptography market. The country ranks third in the adoption index of the cryptography of the chain chain chain, which only takes up India and Nigeria. The Indonesia cryptography industry experienced $ 157 billion in value admissions between 2023 and 2024, making it a leader in Central and South Asia and Oceania. The country’s cryptography market is one of the fastest in the region, increasing by almost 200% in annual sliding.
An important part of the activity of the Indonesia cryptography market is attributed to trading. In 2024, the country experienced an increase in transactions and cryptographic traders, particularly interested in mecoins. In particular, a large part of this volume comes from decentralized products. In Indonesia, the share of decentralized exchange transactions (DEX) between all cryptographic transfers is much higher than regional and global averages (43.6% against 27.8% worldwide).
The positive position of the Indonesian government towards the crypto supports this growth. The regulators have recently reclassified cryptocurrencies from basic products to digital financial assets, adding to the country’s elaborate crypto framework. The Indonesian Term Trading Regulatory Agency (Bappebti), known for its opening up to market players in licenses, should transfer its surveillance responsibilities to Financial Services Authority (OJK), which will improve the cryptographic industry with greater recognition, improved transparency and more robust investor protection.
The crypto also makes breakthroughs in other sectors of the Indonesian economy. By 2024, the number of cryptographic transactions in the country’s electronic commerce sector – an industry of $ 80 billion – had experienced a massive increase. In addition, Crypto offers tangible advantages to a wide range of users, as it has reduced payment costs: Each year Indonesians save up to $ 300 million on money transfers.
Go beyond 8%
For many Indonesians, the crypto serves as a value reserve and the best way to make cross -border payments. While people familiarize themselves with simple cryptographic products, they adopt more complex mechanisms such as agriculture and stake. These serve as a gateway easy to finance for Indonesians, especially the young generations.
Indonesia has a very young population – people aged 10 to 19 form the largest demographic group in the country and will soon become (and will already become) from participants to the financial system. Meanwhile, a third of the 277.5 million inhabitants of Indonesia do not remain banished. These new economic participants will probably turn to crypto rather than traditional financial products, which even their parents often do not have access. This has a single investment potential for anyone entering the Indonesian Web3 market.
With the world leadership of Indonesia in the adoption of cryptography, the reported number of users of crypto in the country now represents only 21.3 million, or less than 8% of its population. The industry should develop various cases of using cryptography and solutions adapted to the country’s unique cultural and ethical ecosystem to maintain leadership and adopt the remaining 92%.
With 87% of Indonesians identifying themselves as Muslims, their financial behavior is influenced by Islamic principles, imposing specific requirements for the services they use daily. Although the traditional economy offers many products of this type, the cryptography market must catch up to provide Indonesians with solutions they can use without compromising Islamic values.
First of all, they could include solutions that comply with Sharia law. The interest is prohibited for Islamic finance, limiting the possibility of borrowing, lending and providing liquidity to Muslims. Decentralized financing platforms for the Islamic bank could solve this problem by offering financial tools in accordance with Islamic values. Zakat (charity) distribution systems based on blockchain would add transparency and efficiency to Islamic donations.
Secondly, localized educational initiatives focused on Islamic finance could demystify crypto and respond to current concerns concerning ethics and security, in particular for older generations and rural areas where skepticism towards digital assets could be higher.
Third, because the growing links between the economies of Crypto and Fiat are a global trend – and Indonesia is no exception – collaborating with local institutions would give additional motivation. Partnership with Indonesian banks, regulators and fintech startups would help create hybrid solutions that integrate traditional financial systems into Blockchain technology.
Finally, industry should focus on real world use cases. The adoption of the crypto could achieve new heights if more products meet the pressing local needs, such as sending of cross -border funds, decentralized certifications or microfinance for small businesses.
Ethics solutions could meet the financial needs of a broader Indonesian audience and present the world’s fourth population to the advantages of the cryptography economy. This would help unlock industry growth in Indonesia and maintain the country’s leadership position on a global scale.
It has been known for a long time that digital assets find special demand in developing countries, where people have trouble accessing traditional financial tools or seeking ways to deal with inflation. Indonesia is an excellent example of how this request can produce remarkable results when guided in the right direction. Its regulators adopting a Pro-Crypto position, the country directs a world revolution in web3, which questions the domination of the world-based crypto hubs.
Mohammed Alkaff Alhashmi is the co-founder of the Haqq network. Mohammed has more than 18 years of IT and engineering experience, focusing on industry 4.0, artificial intelligence, automatic learning, industrial automation and the Internet of Things.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
