On-shore VASP in Indonesia

VASP: VASP Registration/License with OJK (post-Jan 2025 transfer). Previously IDR 50B (~$3.2M USD) minimum capital under Bappebti. OJK requirements being finalized. Must establish Indonesian entity (PT). 6-12 months.

OJK — Financial services authority — VASP oversight (from Jan 2025)

Bappebti — Former crypto commodity regulator (authority transferred to OJK Jan 2025)

PPATK — Financial intelligence unit — AML compliance

Omnibus Financial Law (P2SK) (2023) — Transfer of crypto oversight from Bappebti to OJK

Bappebti Regulation 5/2019 (amended) (2019) — Crypto asset trading as commodity futures

CUSTODY: Included under VASP license; customer asset segregation required

EXCHANGE: Physical trader registration. National crypto bourse (Bursa Kripto Indonesia) launched 2023. Islam-related considerations (MUI halal debate) affect adoption.

Capital: As above; OJK enforces ongoing equity maintenance and can demand extras.

AML/KYC: Mandatory robust systems, including customer identification, transaction monitoring, cryptographic protocols, and security controls; integrated into operating procedures.

Local Presence: Indonesian incorporation (e.g., via Ministry of Investments portal); local directors, business plans proving viability, and technical infrastructure readiness.

Other: Risk management, consumer protection, periodic/incidental reporting to OJK; NIB (Business ID) and KBLI 62014 for blockchain activities.

Register company (PT/PT PMA) via Ministry of Investments portal and obtain NIB.

Prepare dossier: Business plan, beneficial owner details, statutes, capital proof, AML/KYC/security schemas (translated to Indonesian, notarized).

Submit to OJK (sandbox graduates apply within letter validity; others directly).

OJK review (months-long): Inspects docs, reputation, operations; may reject/return for fixes.

License issuance if compliant.

POJK 27/2024: OJK rules on DFA trading, storage, risk, consumer protection (covers exchanges/custodians/traders). [https://www.legal500.com/guides/chapter/indonesia-blockchain-crypto-assets/?export-pdf]

POJK on ITSK Implementation (Article 23): Licensing for tech innovation/DFA providers via OJK. [https://ojk.go.id/en/fungsi-utama/itsk/perizinan-itsk-aset-keuangan-digital-aset-kripto/default.aspx]

BAPPEBTI Reg. No. 5/2019 & No. 7/2020: Defines DFA as commodities, prior exchange requirements (transitional to OJK).

Receiving and analyzing STRs (within 3 working days) and CTRs.

Issuing guidelines for suspicious transactions and compliance.

Providing financial intelligence to law enforcement.

Conducting risk assessments and supporting national AML strategies.

Financial Services Authority (OJK): Primary regulator since January 10, 2025, supervising trading, exchanges, settlement, clearinghouses, custodians, and asset dealers. It enforces licensing, governance, capital requirements, KYC/AML, and a "same activity, same risk, same regulation" principle aligned with global standards.

Bank Indonesia (BI): Central bank enforcing the Currency Law, prohibiting crypto use for payments and upholding the rupiah as sole legal tender.

Commodity Futures Trading Regulatory Agency (BAPPEBTI): Former regulator until the 2025 transition to OJK; previously oversaw crypto as commodities.

OJK Regulation No. 27 of 2024: Classifies crypto as digital financial assets; mandates compliance on capital, consumer protection, and AML by July 2025. Effective post-January 2025 transition.

OJK Regulation No. 23/2025: Introduces a whitelist of 29 licensed digital asset platforms/exchanges; restricts unlisted operators, requires segregated margin accounts, user knowledge tests for derivatives, and approved asset listings.

Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU PPSK): Passed December 15, 2022 (effective January 12, 2023); transfers crypto oversight from BAPPEBTI to OJK by January 10, 2025, to enhance investor safety and align with international standards.

Currency Law: Prohibits crypto payments; rupiah-only legal tender (pre-2017 BI ban on payments).

Travel Rule adopted — threshold: IDR 100,000,000

Evidence fact id.tax not found (may have been renamed).

Trading gains and sales are subject to final income tax (PPh 22 Final) at 0.21% of the gross transaction value for domestic exchanges (up from 0.1%, effective around August 2025).

PMK 50/2025: Reshapes crypto taxation, final income tax on trading, VAT expansions/exemptions.

Certain crypto-to-crypto trades may be VAT-taxable under 2025 rules.

Case Context: Indonesian authorities, led by PPATK and Densus 88, analyzed on-chain data to trace funds from domestic sources (e.g., Indonesian exchanges) to foreign terrorism networks. One individual sent 15 transactions totaling over 49,000 USDT. Defendants acted as financiers, not direct attackers.

Significance: Marked Southeast Asia's first court acceptance of blockchain evidence in terrorism financing cases, setting a legal precedent. PPATK noted rising suspicious crypto transactions, including a 2023 joint action uncovering ISIS funding disguised as humanitarian aid.

Regulatory Shift: OJK assumed crypto oversight from Bappebti in January 2025, mandating AML/CFT reporting (SEOJK No. 20/2024), which supported these investigations.

Case Context: Kominfo probed Worldcoin's data practices amid global concerns (e.g., similar actions in Kenya, Germany). Emphasized protecting digital rights under Indonesian law.

Significance: Highlights Indonesia's focus on data privacy in crypto/biometric projects, aligning with OJK's consumer protection rules (e.g., OJK No. 27/2024).