INDONESIA Law and Practice Contributed by: Winnie Yamashita Rolindrawan, Bianca Putri Kadarisman and Qafaldi Putra Ismayudha, SSEK Law Firm
Collateral Arrangements The use of crypto-assets in collateral arrangements is not expressly addressed or regulated under Indo- nesian law. As crypto-assets are not formally recog- nised as property under the civil law framework, the legal mechanics of creating a security interest over crypto-assets remain uncertain. In practice, owner- ship disputes and collateral-related issues involv- ing crypto-assets have not featured prominently in Indonesian legal proceedings, in part because most crypto-asset activity occurs through licensed Digital Financial Asset Traders where ownership records are Companies providing crypto-asset services in Indo- nesia are required to partner with a licensed Payment Service Provider ( Penyedia Jasa Pembayaran , or PJP) for their Rupiah payment processing needs. A PJP is a company licensed by Bank Indonesia to provide payment system services. Licensed Digital Financial Asset Traders are single-purpose entities and are therefore not permitted to hold a PJP licence concur- rently. 1.2.3 ESG/Sustainable Finance There are currently no ESG or sustainable finance requirements, such as specific disclosure or reporting obligations, applicable to digital assets or digital asset businesses under OJK Reg 27/2024, as amended, or any other Indonesian regulation specifically governing the digital asset sector. Digital Financial Asset Trading Providers are subject to general corporate reporting and governance obligations applicable to Indonesian companies, but no ESG framework has been devel- oped for the digital asset industry. 1.2.4 Tax Tax Treatment of Crypto-Assets relatively straightforward. 1.2.2 Access to Banking Payment Service Provider Requirements Indonesia’s tax regime has not been comprehensively updated to address blockchain technology or digital assets. The most notable crypto-specific tax devel- opment is the imposition of income tax (PPh) and value-added tax (PPN) on crypto-asset transactions. Crypto-asset sellers are subject to final income tax, while buyers pay value-added tax on the transaction
smart contract arrangements with traditional written agreements governed by Indonesian law 1.1.5 Industry and Trade Bodies There are several trade associations representing Indonesia’s blockchain industry, including Asosiasi Blockchain Indonesia (Indonesian Blockchain Asso- ciation, or ABI) and the Indonesia Blockchain Society (IBS). These associations serve primarily as forums for industry players to network and share knowledge, and they engage with the government and regulators on policy matters relevant to the blockchain sector. Their role is consultative rather than regulatory, as they do not possess self-regulatory authority over their mem- bers. 1.2 Crypto-Assets Under OJK Reg 27/2024, as amended, crypto-assets are classified as digital financial assets, defined as financial assets stored or represented digitally, includ- ing crypto-assets. This classification is primarily regu- latory in nature and does not establish crypto-assets as a form of property in the traditional civil law sense. The legal characterisation of crypto-assets as prop- erty capable of ownership under Indonesian civil law has not been definitively settled. Transfer of Ownership 1.2.1 Property Considerations Classification of Crypto-Assets In practice, the transfer of ownership of crypto-assets in Indonesia occurs through buying and selling or transferring crypto-assets on or through licensed Digi- tal Financial Asset Traders. Regulated activities under OJK Reg 27/2024, as amended, include: • the purchase and sale of crypto-assets against Rupiah; • exchange between crypto-assets; • custody of consumer crypto-assets; and • transfer of crypto-assets between wallets. Ownership transfers occurring outside these regulated channels are not explicitly recognised or addressed under Indonesian law.
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