Buy Bitcoin In Indonesia

Buy Bitcoin in IndonesiaBuying and selling of cryptocurrencies have become quite popular all over the world over the past few years, and Indonesia is no exception.

This guide serves as a detailed tutorial to buying Bitcoin and picking the best exchanges available in Indonesia.

Below is a list of top and popular cryptocurrency exchanges in Indonesia.

Luno

Luno Exchange Review

While Luno is available in several countries, it actually offers an encouraging fee structure to customers based in Indonesia.

This could be because Luno has offices in Indonesia. On Luno, Indonesian makers can be rewarded as high as +0.2% bonus per each trade while takers are charged at -0.2%. This is a working incentive in Luno, and traders are more encouraged to use Luno instead.

However, verification is compulsory for Indonesian investors’ documents including a scanned ID and proof of address also.

You can access Luno here.

  • It is one of the most reliable Bitcoin and Ethereum exchanges in Asia
  • Withdrawal fees are low, and deposits are free
  • Depending on verification level, you can make increasingly high exchanges if need be.
  • Privacy is low and users should not store Bitcoins (BTC) in Luno wallet.

Coinmama

Coinmama Review

Coinmama is a great Bitcoin exchange and is available in several countries. It specializes in debit and credit card transactions. If you plan on using either of these methods to purchase Bitcoin or other cryptocurrencies, then this could be a great option.

Due to the nature of card transactions, they incur slightly higher fees than bank transfers. Expect 5.5% fees when Coinmama is used.

Coinmama doesn’t store any user funds on the exchange and requires users to have a wallet address to send funds to. As long as you have a Bitcoin wallet and a card, Coinmama is a great option.

Indodax

Indodax (formerly Bitcoin.co.id) is arguably the largest cryptocurrency exchange in Indonesia, boasting more than 50000 active users. You are allowed to buy cryptos by cash, bank transfers, e-wallets, and vouchers.

The Indodax company, (which is its new name as of March 14, this year) also offers a physical store for customers who purchase bitcoins. This is a strong merit when it comes to privacy.

Like Luno, Indodax can award market makers with a bonus of up to +0.3%.

From what we can find online, Indodax Support is readily available at all times and bank deposits are processed swiftly.

Overall Indodax is a great exchange for users in Indonesia. Some downsides of the exchange include:

  • It is not private, deposits require ID verification
  • Not new-user friendly. Mostly optimized for established traders.

LocalBitcoins

LocalBitcoins is available and used all over the world and also in Indonesia. It is an escrow peer to peer network which facilitates meetings with buyers and sellers alike. Payment methods used in LocalBitcoins are mostly cash deposits, although Moneygram and Webmoney and also bank transfers are viable options.

Although the platform is quite popular and used around the world, Indonesian traders using LocalBitcoins are substantially few. This is probably owed to the unfavorable developments targeted at cryptocurrencies in Indonesia. Since two-factor authentication, also called 2FA is the only safety premise available, security might be a possible concern. IDR payments are allowed depending on the conditions set by the seller.

Verification works similarly too and is solely dependent on the requirements postulated by the sellers.

LocalBitcoins fees are low, at only 1%. However, some sellers may have a premium on price due to the additional privacy P2P transactions offer. LocalBitcoins is quite fast, private and also relatively easy to use.

Virwox

Virwox Exchange Malaysia

Virwox is not exactly your traditional Bitcoin exchange. Although the purchase process is relatively complicated, it is an excellent alternative for customers with a PayPal account and who are looking to buy Bitcoin with it.

To buy Bitcoin on Virwox, you would first have to buy Second Life Lindens, which is a currency used in the virtual world Second Life. While you cannot buy Bitcoin with PayPal at VirWoX, you can, however, buy the Second Life Lindens (SLL) initially and then trade your SLL for Bitcoin.

This process works quite perfectly, but its main disadvantage is that it may end up costing you up to 10%-12% in purchasing fees.

This clever alternative has made VirWox quite popular and easy for traders with a PayPal account.

Bitcoin ATMs

Bitcoin ATM

As of this time, there is only one Bitcoin ATM available in Indonesia, and you would find it at Bali. This might be a quick and easy alternative for investors staying in Bali.

The Bitcoin ATM available in Bali is provided by Indodax, and as the ATM works, you are allowed to make purchases without any identity verifications.

However, the purchase fees are higher when using an ATM as you are required to pay an extra 3 percent.

Changelly

changelly usd

Changelly is a popular cryptocurrency exchange that allows users to exchange other cryptocurrencies with Bitcoin for a low fee of .5%. If fiat currency is used, the fees are much higher at 5%.

Changelly swaps input and output currencies in one quick swap making it one of the faster options for purchasing Bitcoin in Indonesia.

ArtaBit

**At the time of this writing Artabit is temporarily offline**

ArtaBit claims it is the leading exchange offering bitcoin in rupiah in Indonesia. Purchase systems available and accepted on ArtaBit include bank transfers, cash transfers and also wallet services. 

You are also permitted to use IDR cash as a form of payment, but you have a limited cap of 100.000 IDR if your account has not been verified. You can achieve higher limits and better incentives by submitting a scanned ID and passport for verification.

Bitcoin-OTC

Newbies and new users on bitcoin-OTC might not find the platform friendly. Using an over-the-counter strategy (full meaning of OTC), the marketplace facilitates the P2P exchange of bitcoin. On Bitcoin-OTC, it is very possible and relatively easy to make a large trade, as the platform does not require identity verification. How does it work? A user or investor would have to create ads and post offers while she looks for possible buyers. Although it seems to be a bit difficult to use, it is a wonderful alternative for countries that are short on available channels of exchange.

Bitcoin-OTC is a good alternative when no other options work for you. There is always the possibility of fraud and scams and you might need to develop a reliable trust for your account before you are permitted to trade in large quantities.

MyCelium Local Trader

MyCelium would only be great for traders in urban and densely-populated areas. This is because Mycelium works by finding the nearest local Bitcoin seller or investor and buy or sell from at a fiat currency of your own choosing.

Mycelium does not charge any fee, and you can actually meet up in person with your investor and make your trade.

The platform does not require any verification process and is quite easy and cheap. The Mycelium wallet provides private keys and is widely seen as one of the safest places to store one’s bitcoins. However, MyCelium is only available on the mobile platform.

Apart from the suggested methods in this guide, there are other forms of exchanges available in Indonesia like Shapeshift and Quoine. You are however advised to be precise, and deliberate in choosing your preferred way of exchanging digital currencies and try to keep an eye out for scams.

Bitcoin in Indonesia

Recent Happenings Indicate That Indonesia is Gradually Adopting Bitcoin

It is no gainsaying that with the rate at which the demand for Bitcoin and other cryptocurrencies keeps increasing, individuals, firms and even government of countries have been forced to see the virtue in the use virtual currency and its bedrock technology; blockchain. Fortunately, Indonesia is one of those countries, in light of recent happenings in the Asian nation, it can be reasonably concluded that the country is gradually adopting cryptocurrency after years of skeptic approach towards the emerging innovation.

Indonesia Gives the green light to Crypto

Indonesia joined the list of countries that recently showed interest in cryptocurrency, the country’s Ministry’s Futures Exchange Supervisory Board, Bappebti, recently signed an agreement to officially allow virtual currency a tradable product on a stock market.

Dharma Yoga, the head of market supervision and development bureau at Bappebti, was more than confident as he stated that the decision to permit Bitcoin, Ethereum and other altcoins in the stock market was not hurriedly made as a period of four months was devoted to study and research into the subject matter before the decision was made.

Yoga further stated that with the rate at which things were going, stakeholder would be left with no choice than to come together to build a framework for the emerging sector. He suggested that financial watchdogs in the country like the Financial Services Authority (OJK), Taxation Directorate General, the Financial Transaction Reports and Analysis Centre (PPATK), the Central Bank as well as the police counterterrorism were concerned bodies on the project to ensure a balanced framework for the Indonesian digital currency sector.

However, Indonesian Apex Bank Yet to Accept Crypto

In contrast to Bappebti’s stance, the Central Bank of Indonesia has not been optimistic about the adoption of Bitcoin and other crypto tokens. The central bank insisted that it does not consider cryptocurrency as a medium of fair exchange and that virtual currencies are not fit to be payment instrument. This further caused confusion and uncertainty among crypto enthusiasts and traders in the country as Bappebti’s position appeared to be in sharp contrast with that of the central bank as the former recognizes the importance of virtual currencies.

In an attempt to influence the Indonesian apex bank’s stance on cryptocurrency, many stakeholders in the country made a request to the central bank to consider creating a crypto exchange for the country. Chatib Basri, who was the former minister of finance in the country, advised the central bank to embrace crypto and adopt its bedrock technology to improve the financial service system in the country’s financial sector.

It must be pointed out that the lack of an enabling environment for crypto firms had an adverse effect on the activities of the emerging sector. Two crypto exchange platforms in the country closed up in January because apex bank had proceeded to issue a notice to discourage all citizens from the use of bitcoins and other digital tokens.

Bitcoin Thrives in Indonesia Despite Central Bank Warning

It is important to note that the Bank of Indonesia did not place a ban on crypto trading platforms in the country, it only warned investors to refrain from acquiring, selling and trading tokens. However, the central bank’s move didn’t stop Indonesians from engaging crypto activities as Bitcoin kept thriving despite this warning, showing its bright side.

Chief Executive Officer of the Indonesian Digital Asset Exchange, Oscar Darmawan, stated that the platform is currently aiming at doubling its daily volume from an average 100 billion rupiah ($7.3 million) a day. This is just one of several exchanges in the country while the country’s looking forward to expansion.

Indonesia Investors Might Outnumber Counterparts in Stock Market

As it stands in Indonesia, it can be rightly pointed out that the biggest Indonesian platform to buy and sell cryptocurrency may soon have more participants than the country’s conventional stock exchange market.

According to Oscar Darmawan, Indonesia Digital Asset Exchange formerly known as Bitcoin.co.id will have nothing less than 1.5 million members buying and selling Bitcoin and other cryptocurrencies before the end of the year. While the Indonesia Stock Exchange, which offers stocks, futures, and options as well as exchange-traded funds, accounts for only 1.18 million participants. Darmawan further stated that;

“We are seeing almost 3,000 new members signing up every day.” “Most people are trading in bitcoins though transactions in Ethereum has increased significantly of late.”

Bitcoin on the Street of Indonesia

Getting Bitcoin and altcoins on the street of Indonesia appears to be as easy as shopping for groceries in a store, seekers can buy popular digital tokens through exchanges, peer to peer agreement, debit or credit card. Buyers also use the bitcoin ATMs as they are readily available in the country. Also, local traders are also readily available for buyers and sellers. Even with all these means of purchasing digital assets in Indonesia, buyers would have to look at the right platforms though.

Are Cryptocurrency exchanges legal in Indonesia?

Before making a choice at all, you have to be sure if buying and selling of cryptocurrencies are completely legal in your country.

As it stands now, there is no law restricting or banning the ownership and trade of cryptocurrencies in Indonesia, although there have been certain developments in recent years by the government which has been hardly supportive.

It also looks like the overall attitude of the Indonesian government towards cryptocurrencies might be negative considering their recent ban of payments expressed in cryptocurrencies.

However as an Indonesian trader, you are still very much permitted to have your own crypto assets; buy, sell and hold them.

Is Bitcoin popular in Indonesia?

Absolutely! The country has great support for the currency and has a few native exchanges. Bank Indonesia official has made a few comments on it but nothing significant.