Indonesia is rapidly growing as a leader in Web3 and crypto adoption, with a young population and supportive regulations. To expand further, the crypto industry must offer solutions aligned with local cultural and Islamic finance principles.
Indonesia’s Rapid Web3 Growth
Everyone is now on board with Web3’s progress. In Indonesia, on the other hand, there is nothing less than a Web3 change going on. Indonesia is going to be a world star in Web3 innovation in the next few years thanks to its high level of crypto adoption, its young, tech-savvy population, and its friendly regulatory environment.
But as the local market grows, more answers must be found that fit with the unique morals and cultures of the Indonesian people.
Indonesia’s crypto market has seen some of the biggest growth rates in the world. The country comes in third place on the Chainalysis Global Crypto Adoption Index, behind India and Nigeria.
The cryptocurrency market in Indonesia gained $157 billion in value between 2023 and 2024, making it the biggest in Central and Southern Asia and Oceania. The crypto market in the country is one of the fastest-growing in the area, growing by almost 200% in just one year.
Trading accounts for a big part of the crypto market action in Indonesia. There were a lot of crypto deals and traders in the country in 2024, especially those who were interested in memecoins.
It’s worth mentioning that a lot of this volume comes from decentralized goods. The percentage of decentralized exchange (DEX) transactions in all crypto transfers in Indonesia is 43.6%, which is much higher than the regional and global standards of 27.8% and 17.2%, respectively.
This growth is helped by the fact that the Indonesian government is supportive of crypto. Recently, the government changed the classification of cryptocurrencies from goods to digital financial assets. This made the country’s crypto system even more complex.
The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti), which is known for being open to market players when it comes to licensing, is going to give its oversight duties to the Financial Services Authority (OJK). This will make the crypto industry more well-known, more open, and better protect investors.
Cryptocurrency is also making its way into other parts of the Indonesian economy. Through 2024, there were a huge increase in the number of crypto transactions in the country’s $80 billion e-commerce market. Also, crypto has real benefits for many users because it has lowered the cost of sending money abroad: Over $300 million is saved every year by Indonesians who send money to other countries.
Crypt is the best way for many Indonesians to keep value and send money across borders. As people learn more about easy crypto products, they move on to more complicated ones, such as yield farming and staking. These are simple ways for Indonesians, especially younger people, to get money.
People in Indonesia are very young. The biggest group of people in the country is between the ages of 10 and 19. They will soon be able to use the financial system and are already doing so.
In the meantime, one-third of Indonesia’s 277.5 million people still don’t have bank accounts. Cryptocurrencies are more likely to be used by these new people in the economy than traditional financial goods, which most people, even their parents, don’t have access to.
Anyone who wants to trade in the Indonesian Web3 market can take advantage of this one-of-a-kind chance.
Even though Indonesia is the world leader in crypto acceptance, only 21.3 million people in the country are said to use crypto—less than 8% of the population. To stay ahead and attract the other 92%, the crypto industry should come up with a wide range of use cases and solutions that are specific to each country’s culture and ethical environment.
Since 87% of Indonesians say they are Muslims, Islamic principles affect how they handle their money and put strict rules on the services they use every day.
Aligning Crypto Solutions with Islamic Values and Local Needs in Indonesia
There are a lot of these kinds of goods in the traditional economy, but the crypto market needs to catch up before it can offer Indonesians solutions that don’t go against Islamic beliefs.
To begin, these could include options that are in line with Shariah. Interest is not allowed in Islamic finance, which makes it harder for Muslims to borrow money, give money, and provide liquidity.
Decentralized finance systems for Islamic banking could help with this by giving Muslims financial tools that are in line with their beliefs. Blockchain-based methods for distributing zakat (Islamic charity) would make Islamic donations more open and efficient.
Second, regional education programs that focus on Islamic finance could help take the mystery out of crypto and address common worries about safety and ethics, especially for older people and people who live in rural areas where doubts about digital assets may be higher.
Third, working with Indonesian institutions would be extra motivating because there are more and more links between crypto and fiat markets around the world.
Working together with Indonesian banks, regulators, and fintech startups could help make solutions that combine blockchain technology with standard financial systems.
Lastly, the business world should pay attention to how things are used in the real world. Cryptocurrency use could hit all-time highs if more products met important local needs, like sending money across borders, getting certified, or providing small businesses with decentralized microfinance.
