INDONESIA Law and Practice Contributed by: Winnie Yamashita Rolindrawan, Bianca Putri Kadarisman and Qafaldi Putra Ismayudha, SSEK Law Firm
addressing market manipulation, insider trading or other forms of market abuse in the crypto-asset con- text. This represents a notable gap in the regulatory framework, particularly as the crypto-asset market continues to grow. Capital Markets Framework By contrast, Indonesia’s capital markets framework contains well-established insider trading provisions under Articles 95 to 98 of Law No 8 of 1995 regard- ing Capital Markets, which are applicable to securities traded on the Indonesian Stock Exchange. The follow- ing conduct is prohibited: • any insider of an issuer or public company pos- sessing inside information is prohibited from pur- chasing or selling that company’s securities or the securities of companies transacting with it; • any insider from influencing other parties is prohib- ited from trading on inside information, or from dis- closing inside information to any party that could reasonably be suspected to use it to trade; • any non-insider who knows or should know that information is inside information is prohibited from conducting the above acts; and • securities companies possessing inside informa- tion are prohibited from conducting securities transactions involving those securities, unless act- ing on customer instructions without providing any recommendation. These provisions apply to securities and do not extend to crypto-assets. The absence of an equivalent frame- work for crypto-asset markets means that conduct prohibited in the securities context may not currently be subject to regulatory sanction in the crypto-asset context. 2.6 Non-Compliance Enforcement Against Unlicensed Entities The most visible enforcement mechanism applied in Indonesia’s crypto-asset sector is the blocking of access to foreign platforms that provide regulated crypto-asset services to Indonesian consumers with- out a local licence. In practice, the websites and appli- cations of such platforms are blocked in Indonesia and cannot be accessed without a VPN. This has been
applied to a significant number of foreign crypto-asset platforms, and reflects a consistent regulatory policy. Enforcement Against Individuals Enforcement actions specifically targeting individual foreign nationals providing crypto-asset services to Indonesian consumers have not been a prominent feature of the regulatory landscape. The enforcement focus to date has been on the entities providing the services rather than on individuals. Outlook The regulatory enforcement stance is unlikely to change materially in the next 12 months. The approach of blocking unlicensed foreign platforms has been consistent since the early development of the crypto- asset industry in Indonesia, and reflects a settled poli- cy position. As the OJK’s institutional capacity grows, more active enforcement across a broader range of non-compliant conduct may be expected over time. 3. Licensing and Set-Up Requirements 3.1 Licensing Requirements Triggers for Licensing A licence from the OJK is required when a company wishes to conduct activities falling within the scope of regulated digital financial asset trading activities under OJK Reg 27/2024, as amended. This encompasses the activities of Digital Financial Asset Trading Provid- ers. Any company whose proposed business model involves any activity that falls within the defined scope of these licenceswill be required to obtain the relevant licence before commencing operations. Territorial Scope The licensing requirement applies to entities provid- ing services to consumers in Indonesia, regardless of where the entity is incorporated or based. The OJK takes the position that foreign entities actively offering or providing regulated crypto-asset services to Indo- nesian consumers are subject to Indonesian licensing requirements. The most common basis for requiring a foreign entity to establish a local presence is the solici- tation or provision of services to Indonesian residents.
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