More than 60% of cryptocurrency investors in Indonesia are under the age of 30, driving trading volume to 2.1 billion USD in September.
According to the latest report from the Indonesian Futures Commodity Trading Agency (Bappebti), youth are playing a leading role in the cryptocurrency market in this country. Data shows that 26.9% of investors are in the age group 18-24 and 35.1% are in the 25-30 age group, accounting for more than 60% of the total 21.3 million cryptocurrency users in Indonesia in September. The trading volume of digital assets during the same period reached 33.7 trillion rupiah, equivalent to about 2.1 billion USD.
The trend reflects the growing interest of the younger generation in cryptocurrency globally. A survey by Policygenius in the U.S. shows that members of Gen Z (ages 18-26) and Gen Y (ages 27-42) tend to invest in cryptocurrency more than older generations. A 2023 study by Bitget also indicates that 46% of Gen Y members in major economies own cryptocurrency.
Cryptocurrency ownership by age group among adult Americans. Source: Policygenius Legal framework and tax challenges
In Indonesia, cryptocurrency is recognized as a commodity and is regulated by Bappebti. However, users are facing a double taxation system, including a 0.11% value-added tax (VAT) and a 0.1% capital gains tax applicable to cryptocurrency transactions since 2022.
Bappebti has called on the government to reconsider these tax regulations. Mr. Tirta Karma Senjaya, Director of Market Development at Bappebti, stated that cryptocurrency could soon become an important part of Indonesia's economy and suggested that the Tax Department reassess the current tax mechanism.