**72% of Indonesian Crypto Exchanges Still Unprofitable Despite 20M Users**

The Indonesian crypto market has been experiencing a significant challenge: despite having over 20 million users, approximately 72% of the country's licensed cryptocurrency exchanges are still operating at a loss. According to data from the Financial Services Authority (OJK), the total value of crypto transactions in Indonesia fell to IDR 482.23 trillion (~$30 billion) in 2025, down from IDR 650 trillion in 2024.

The OJK attributed this decline to Indonesian investors increasingly trading through regional and global platforms rather than domestic exchanges. This trend is not surprising, given that traders are seeking more competitive conditions abroad. Indodax CEO William Sutanto explained that the outflow of funds from domestic exchanges stems from the uneven playing field: while foreign platforms do not bear tax and compliance burdens, they can still be accessed by Indonesian investors via VPN, with deposits processed through local banks.

"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 said. "The market will look for places with more efficient execution and competitive costs."

But it's not just the regulatory burden that's driving Indonesian investors to foreign platforms. Many users have cited lower costs, faster withdrawals, and lingering security concerns after Indodax's 2024 hack as reasons for preferring overseas exchanges.

"Local exchanges ask for so much paperwork for withdrawals over $1,000," one user said. "With P2P on global exchanges, it takes less than a minute."

The Indonesian crypto market underwent a major regulatory shift on January 10, 2025, when oversight transferred from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK. The regulator moved to break up the previous single-exchange structure by issuing new licenses.

However, with 29 licensed exchanges now competing for a limited domestic market, profitability pressures have intensified. Adding to the pressure, global players are entering the market directly. Robinhood announced plans in December to acquire Indonesian brokerage PT Buana Capital Sekuritas and licensed crypto trader PT Pedagang Aset Kripto.

Bybit also announced a strategic partnership with the local platform NOBI to launch Bybit Indonesia, while Binance already operates in Indonesia through its subsidiary, Tokocrypto. The influx of well-capitalized global competitors is intensifying pressure on domestic exchanges, which are already struggling with thin margins.

The challenges come as Indodax itself faces scrutiny. OJK is currently investigating reports of approximately IDR 600 million in missing customer funds. While Indodax has attributed the losses to external factors such as phishing and social engineering rather than system breaches, the case highlights the trust issues domestic exchanges must overcome to retain users.

Sutanto called for consistent enforcement against illegal foreign platforms alongside efforts to build a healthier domestic ecosystem. He emphasized that collaboration between regulators and industry players is key to addressing the structural challenges facing Indonesian crypto exchanges.