Indonesia's Elections: A Turning Point for Its Booming Crypto Sector

• Indonesian Government's Interest in Crypto Could be impacted by Upcoming General Elections
• Varied Stance of Leading Candidates
• Ganjar Pranowo and Mahfud MD - Silent but Possibly Supportive
• Gibran Rakabuming Raka and Prabowo Subianto - Vocal Supporters of Crypto
• Impending General Elections Could Determine Crypto's Future in Indonesia

Indonesian Government's Interest in Crypto Could be impacted by Upcoming General Elections

Indonesia's government has exhibited a strong interest in the cryptocurrency industry. The current government, under the leadership of President Joko Widodo, has even initiated global plans for cryptocurrency in the country and established the world's pioneering digital assets exchange. However, the impending general elections in February might significantly impact the industry, especially in the case of a change in leadership.

Varied Stance of Leading Candidates

Not every leading candidate has been vocal about their stance on cryptocurrency, but their comments provide some insight into the possible future of the industry under their governance. Presidential and vice-presidential candidates Anies Baswedan and Muhaimin Iskandar have kept mostly silent on the matter, but as representatives of the opposition, their plans to overhaul existing policies could carry implications for the crypto industry. Specifically, Muhaimin proposed in 2022 a tax on crypto transactions to increase state revenues. He also recommended stricter regulations, including the supervision of the sector by the Financial Services Authority (OJK). The industry is hoping that the OJK's takeover of crypto supervision in 2025 could lead to lower tax burdens on crypto users and exchanges, a development they believe is currently driving traders away.

Ganjar Pranowo and Mahfud MD - Silent but Possibly Supportive

Another notable pair of candidates is presidential hopeful Ganjar Pranowo and his running mate Mahfud MD. They have not publicly discussed crypto during their campaign, but Ganjar, who was the governor of Central Java in 2022, positively acknowledged the creativity of non-fungible tokens (NFTs). He saw the success of Indonesia's NFT, Ghozali, as a source of inspiration for the country's youth, although he also emphasized the importance of tax contributions for the nation's welfare.

Gibran Rakabuming Raka and Prabowo Subianto - Vocal Supporters of Crypto

The candidate most vocal about crypto so far is Gibran Rakabuming Raka, who is currently running alongside Defense Minister Prabowo Subianto. Being a strong advocate for digitization, particularly blockchain and crypto, Raka aims to nurture blockchain and crypto experts to enhance Indonesia's tech sector. His partner, Prabowo, has also expressed his plan to increase the supervision of tax compliance among stock and crypto traders to prevent tax evasion. Together, they seem most likely to maintain the current policies and attitudes towards crypto in the country, and perhaps even promote further crypto-friendly regulatory changes.

Impending General Elections Could Determine Crypto's Future in Indonesia

The general elections in Indonesia are scheduled to commence on Feb. 14. The outcome of these elections could significantly influence the future of the crypto industry in the country.

Edited by Jonathan Stoker