Crypto Assets Enter the PPSK Bill. What are the Implications and Influences for Industry’s Stability?


The Draft Law on the Development and Strengthening of the Financial Sector (RUU PPSK) which is being formulated by Commission XI of the DPR RI aims to create sustainable inclusive and positive economic growth. The PPSK Bill is designed in the Omnibus Law concept which integrates around 16 laws in the financial sector. Crypto assets are proposed to be one of the sectors included in the PPSK Bill as part of the financial sector technological innovation (ITSK). With its development, crypto assets are considered worthy of being one of the future investment instruments. This was also conveyed by Binance CEO Changpeng Zhao at the B20 Summit in Bali, Zhao said “for now 99% of a person’s wealth is still in the form of fiat currency or still using the traditional financial system. However, in the longer term predictions, DeFi and crypto could potentially replace fiat or traditional currencies.” Zhao also sees that “more and more people will migrate to crypto, because in the future about 20 – 30 years it will be much easier to make transactions in the crypto business”. This means that in the future crypto assets will have an important role in helping to improve the global economy.

The regulation and supervision of crypto asset trading are currently regulated by the Commodity Futures Trading Supervisory Agency (Bappebti) so later this will have implications for the regulation and supervision of crypto assets by the Financial Services Authority (OJK) and Bank Indonesia (BI). Meanwhile, in various countries, the regulatory position of crypto assets is classified differently so this should be taken into consideration by the Indonesian government in positioning crypto assets in Indonesia as commodities or financial services/products. For example in Singapore, crypto is not considered a legal means of payment but a digital asset by implementing clear, measurable, and structured regulations in providing legality so that all movements are under government supervision and the safety of consumers is also guaranteed. Similarly in Indonesia, crypto in America is generally considered a commodity. However, several other countries, such as Japan and Australia, consider crypto as property. Meanwhile, in Canada and South Africa, crypto enters the financial sector and is classified into financial products.

Affan Giffari, Managing Partner of Trifida at Law who is also a partner of the Indonesian Blockchain Association (A-B-I), expressed his opinion from a legal perspective. According to him, this “will result in a shift in law which means implications for regulating the crypto industry if the authority that oversees crypto is the OJK so that all stakeholders must prepare themselves to face the new regime and the government needs to consider legal certainty. For business actors so that later they can offer better products varied and competitive to consumers.”

From the business actor’s point of view, Resna Raniadi, Upbit’s Vice President of Operations also responded to this “Basically, by entering crypto assets into the PPSK Bill, the government wants the best for the industry, both for smooth business processes for business actors and for consumer protection. However, what must be emphasized in going forward is that there are no overlapping regulations or communication between government agencies because this ecosystem is still in its infancy so it would be better if the regulations could be made as simple as possible.

Oscar Darmawan, CEO of Indodax believes that the government will study the PPSK Bill very carefully so that later there will be harmonization of laws and regulations that can accommodate the industry’s needs, “the positive side is that it can make industries engaged in crypto not only considered as commodities but as financial institutions that regulated by the OJK,” which can support the development of innovation as long as these regulations can make the crypto ecosystem in Indonesia better and can protect consumers.

Duwi Sudarto Putra, as Co-Founder & COO of hopes that “a monitoring system such as preventing data leaks, increasing financial literacy for investors to the authority to eradicate fraudulent practices under the guise of investment, especially in the crypto industry and all related institutions/authorities in the future must be actively coordinated to provide the best decision for the future of the crypto industry and its consumers in Indonesia.”

A-B-I representing the crypto asset industry players also provided several written inputs to the Indonesian Ministry of Law and Human Rights regarding the PPSK Bill and the Ministry of Finance. Given the nature of crypto assets which basically cover trade and financial aspects, the involvement of various stakeholders including the crypto asset industry is needed in the process of drafting the PPSK Law which broadens the scope of ITSK in Article 202 letter h and expands the financial services sector which is under the authority of the Financial Services Authority (OJK) on Crypto Assets that have risk characteristics as stated in the Elucidation of Part Four of Article 5 letter concerning Amendments to Law Number 21 of 2011. Asih Karnengsih, A-B-I’s Chairwoman said, “So far A-B-I has made a lot of efforts to involve crypto asset industry players in discussions on the Bill PPSK, one of which was in the Public Consultation on the PPSK Bill held by the Ministry of Finance and submission of several proposals to the relevant Ministries and Authorities.” Asih also added, “It would be relevant to look thoroughly and carefully at the conditions of the crypto asset industry (both at national and abroad level) and make appropriate and specific policies. Besides that, in order to maintain the conduciveness of the crypto industry in Indonesia, there is a need for an adequate transition or period of transition for business actors and the relevant government regarding adjustment steps to provide a policy framework to the regulatory landscape that will be authorized by each government agency.

Supporting the view above, the same thing was also conveyed by Plt. Head of CoFTRA, Didid Noordiatmoko, gathered from CNN Indonesia (02/11), Didid admitted that he still supports the government’s decision with a note, crypto remains a commodity, not a currency, “later the government will transfer crypto assets to the OJK, but not immediately when the PPSK Bill is promulgated . So, there is a transition period”. Didid also explained that during the transition period which is expected to last for 5 years, CoFTRA will try to make governance regulations. The goal is so that the crypto ecosystem can remain sustainable even though it later switches to the OJK.

SOURCE Asosiasi Blockchain Indonesia


Early 2022: Blockchain Development in Indonesia Is Getting Massive


The phenomenon of crypto and blockchain has grown massively in Indonesia. Many companies are ready to develop crypto assets and blockchain technology namely Metaverse, NFT, and DeFi.

In the past few years (especially since the COVID-19 pandemic began in 2020), Oscar Darmawan as the CEO of Indodax (the biggest and most trustworthy crypto exchange in Indonesia) seen a rapid increase in the number of investors in the country. Indodax itself has more than 5 million members in early 2022.

Oscar Darmawan said the blockchain ecosystem in Indonesia has developed so much and emulated other countries. In the Southeast Asian region, Indodax is also one of the local exchanges with the most members.

“There are many crypto and blockchain asset developers in Indonesia. As a matter of fact, there are many companies in Indonesia stating that they are ready to develop blockchain technology,” said Oscar Darmawan.

As a crypto asset trader, Oscar greatly appreciates the government’s policies that are really receptive to the crypto ecosystem. In Indonesia, crypto is not authorized as a currency or payment method. Crypto is only authorized as investment, hence crypto is treated and defined as assets. The government has recognized crypto assets as one of the important commodities.

“From the regulator’s point of view, I see that the government has been very receptive to crypto. The Indonesian government not only gives a nod to crypto trading but is also very open to crypto asset exchanges like Indodax and strongly supports the development of crypto tokens created by the local creators,” explained Oscar.

The rapid trend of investment in crypto assets is in line with data from the Trade Ministry’s Futures Exchange Supervisory Board (Bappebti) which is responsible for directly overseeing crypto investment in Indonesia. Based on data from Bappebti, the number of crypto investors at the end of 2021 has reached more than 11 million, increasing significantly from 4 million investors recorded in 2020.

“We can see that crypto is a digital product that has a huge potential in Indonesia and this digital commodity is expected to create a new investment ecosystem,” said Oscar.

As a pioneer in Indonesia’s crypto exchange, Indodax has always committed to educating its members all about crypto investment. Moreover, Indodax also strongly supports domestic crypto developers and people in the blockchain industry to continue to grow.

“Hopefully, Indonesia will become a big player and the driving force in the crypto and blockchain industry in terms of mining, traders, as well as developers, not only as a market. I think Indonesia has tremendous potential and through blockchain, Indonesia can forge ahead in more advanced areas than developed countries. This is a very good opportunity in the industrial era 4.0,” Oscar concluded


The Indonesian Blockchain Association Positively Welcomes Bahtsul Masail’s (Discussion Forum Among Islamic Scholars) Response to Justify Crypto Assets Trading


Asosiasi Blockchain Indonesia (The Indonesian Blockchain Association) is Indonesia’s official blockchain and digital asset association. The growth of the crypto asset industry in Indonesia is currently showing a quite drastic increase in transactions, the Minister of Trade, Muhammad Luthfi said last year the trading volume of crypto assets was only Rp. 65 trillion, but in 2021, for the first five months only, crypto asset transactions reached Rp. 370 trillion. Until now, there are still many questions from related parties regarding crypto asset transactions from the perspective of Islamic law which is currently starting to attract public attention.

Yenny Wahid, founder of the Islamic Law Firm (ILF) and Director of the Wahid Foundation, initiated the Bahtsul Masail (Discussion Forum Among Islamic Scholars) activity to discuss halal and haram crypto transactions. Quoted from Wahid explained about crypto assets which are considered halal by some parties because the crypto asset system as a medium of exchange is actually more free from usury than fiat money and conventional banks, with a blockchain system, transactions occur peer-to-peer without intermediaries. Some parties also argue that crypto assets can be said to be halal as long as they are not prohibited by the state or government.

The ILF presented a number of scholars in the Bahtsul Masail which was held virtually on Saturday (19/6), including the caretaker of the Sukorejo Islamic boarding school KH Afifuddin Muhajir, the caretaker of the Al-Anwar Sarang Islamic boarding school KH Abdul Ghofur Maimun, the Deputy Chairperson of the PBNU LBM KH Abdul Moqsith Ghazali, and KH Asyhar Kholil and Habib Ali Bahar. Also present were general speakers who are competent in their fields, including the Head of the Commodity Futures Trading Supervisory Agency (BAPPEBTI) Indrasari Wisnu Wardhana, the Indonesia Stock Exchange – Pandu Patria Sjahrir, Founder and CEO of PT Pintu Kemana Saja – Jeth Soetoyo, and Co-Founder and CEO Indodax – Oscar Darmawan.

Bahtsul Masail produced several discussions regarding the halalness of crypto asset transactions, including: (1) crypto assets are wealth (mal) according to fiqh, so the crypto assets being discussed with Bahtsul Masail are assets in fiqh review. The definition is that if this property is stolen, the theft must be sanctioned, if it is damaged, it must be replaced, (2) because it is wealth, it is valid to exchange it as long as there is no gharar (uncertainty). Why was it decided that way? Because there is a difference in perspective between Musyawirin (former scholars) whether crypto asset transactions occur gharar or not. Some say crypto assets occur gharar, others say crypto assets do not occur gharar. The nature of this gharar is still debated, this is because each individual sees it from their own perspective. Nevertheless, the scholars of Bahtsul Masail agree that crypto transactions must not have gharar, it’s just that the scholars have different opinions regarding this. So, if it is said that in crypto assets there is gharar, then that is not allowed. For those who say that there is no gharar, as also supported by the cleric Bahtsul Masail, crypto assets may be exchanged, (3) The informants urge the public not to make this transaction carelessly if they do not have knowledge of crypto assets, (4) The informants encourage the government to immediately make strong regulations and strengthen guarantees to avoid misuse and irregularities in crypto transactions.

Indodax as one of the Start-Up bitcoin and crypto exchanges and as a member of the Indonesian Blockchain Association represented by the CEO of Indodax, Oscar Darmawan positively welcomed Bahtsul Masail regarding Halal Haram Crypto Transactions, Oscar hopes that Bahtsul Masail’s recommendation is to allow the trading of crypto assets legally Islam can be an input for policymakers in Indonesia. Because according to him, crypto assets already have a legal basis, namely regulations, and are supervised by the Ministry of Trade and the Commodity Futures Trading Supervisory Agency (BAPPEBTI).