- Regulations have postponed the transfer of crypto oversight to OJK.
- OJK and Bappebti are preparing for transition despite regulatory limitations.
Indonesia’s grand plan is facing extreme delay in terms of transitioning the responsibility of overseeing crypto assets from Bappebti to OJK. The change made to complete the transition by 12 January 2025 will not meet its intended timeline due to a lack of regulation and government support for the move.
Reports by Jakarta Globe highlight that, though OJK and Bappebti are actively readying for the transition, related government regulations to buttress the process have not been agreed upon. Mahendra Siregar, OJK Chairman, stated that authorities are already discussing with the Ministry of Trade and are doing the necessary preparations. He said that once the regulation is issued, it will provide a legal basis for handing it over.
Indonesia’s Transition to OJK Crypto Oversight Faces Delay
The crypto oversight proposal was first done by Indonesia’s Finance Minister in late 2022. However, as one would understand, such a bill would need the consensus of both the legislative and the executive branches of government in Indonesia. They have not published the official bill to complete the transition yet.
Reports say that OJK commissioner Hasan Fawzi admitted his agency had researched international crypto rules and trained staff for a new role the regulator will undertake. Meanwhile, Bappebti Head Kasan stated that the current crypto regulations will stay in effect until OJK finalizes the new rules. These delays will prepare OJK and Bappebti for what lies ahead.
Many local players, including local brokers and exchanges, are optimistic that the changes would be one step closer towards increased regulation, or even legality of crypto-trading in the country. Relations of OJK with the national central bank have great potential towards streamlining their rules on cryptocurrency.
A significant part of the broader digital transformation of Indonesia has been the fact that the central bank is advancing with Project Garuda, a pilot program of a central bank digital currency. This further hints that Indonesia is rising as a crypto and digital finance ecosystem player.
