INDONESIA Law and Practice Contributed by: Winnie Yamashita Rolindrawan, Bianca Putri Kadarisman and Qafaldi Putra Ismayudha, SSEK Law Firm
for DeFi participants operating in or in connection with Indonesia.
• backed crypto-assets, which are supported by underlying assets; and • unbacked crypto-assets, which have no such backing. The regulation does not impose specific requirements regarding the composition, location or management of backing assets for backed crypto-assets. There are no requirements mandating that crypto-assets be backed, nor are there provisions governing whether backed crypto-assets may pay interest or yield to holders. 6.2.4 Special Considerations There are no special regulatory considerations or requirements applicable to stablecoins that may pose a systemic risk in Indonesia. As stablecoins are treated as crypto-assets rather than as payment instruments or monetary instruments, systemic risk considerations of the kind that have emerged in other jurisdictions in relation to large-scale stablecoin adoption have not been addressed in the Indonesian regulatory context. 7. Tokenisation and Real-World Assets 7.1 Treatment Regulatory Classification Under OJK Reg 27/2024 and the Draft OJK Regulation on digital financial asset offerings, tokenised assets are recognised as a distinct category of digital finan- cial assets. The Draft OJK Regulation distinguishes between backed tokenised assets, supported by underlying real-world assets, and unbacked tokenised assets, which are not asset-backed. This classifica- tion reflects the OJK’s intention to develop a frame- work accommodating real-world asset tokenisation as a distinct product category. Comparison With Non-Blockchain Equivalents Traditional securities such as shares and bonds are regulated under Law No 8 of 1995 regarding Capital Markets, and supervised by the OJK’s capital mar- kets division. Tokenised versions of such assets, to the extent they constitute digital financial assets under OJK Reg 27/2024, as amended, would fall under the digital financial asset framework rather than the capi- tal markets framework.
6. Payments and Stablecoins 6.1 Payments
Payments in crypto-assets are not permitted in Indo- nesia. The Rupiah is the sole recognised legal tender, and all transactions within Indonesia must be denomi- nated and settled in Rupiah. Crypto-assets are not recognised as a means of payment under any Indo- nesian regulation. PJPs are expressly prohibited from processing payment transactions involving crypto- assets as a payment instrument, reinforcing the pro- hibition at the payment infrastructure level. 6.2 Stablecoins 6.2.1 Fiat Currency and Algorithmic Stablecoins Indonesian regulations do not draw a distinction between fiat currency-backed stablecoins and algo- rithmic stablecoins. OJK Reg 27/2024, as amended, does not define or specifically address stablecoins as a separate category. Any crypto-asset is treated as a crypto-asset under the Indonesian framework, whether backed by fiat currency reserves or maintain- ing its value through an algorithmic mechanism. The only fundamental distinction made under Indonesian law is between Rupiah as legal tender and crypto- assets as digital financial assets. 6.2.2 Stablecoin Regulation Fiat-backed stablecoins are not specifically regulated in Indonesia and are treated as crypto-assets under OJK Reg 27/2024, as amended, subject to the same regulatory framework as other crypto-assets. There is no specific stablecoin regulatory framework in Indone- sia, and stablecoins have not been retrofitted into the existing payments regulatory framework. Stablecoins listed on the approved list of digital financial assets may be traded on licensed platforms; conversely, those not on the list may not be offered or traded in Indonesia. 6.2.3 Backing Assets OJK Reg 27/2024, as amended, recognises two broad categories of crypto-assets:
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