OJK Calls Crypto Slowdown Normal as Recovery Signs Emerge

May 9, 2026 9:23 PM . 5 min read

JAKARTA, Jakartawekly.com — Indonesia’s cryptocurrency market continues to face pressure amid a broader global correction in digital asset prices. However, regulators and industry players believe the current slowdown reflects a natural market cycle rather than weakening investor confidence.

Indonesia’s Financial Services Authority, or OJK, stated that the decline in crypto trading activity is part of a market normalization phase following the strong rally that followed Bitcoin’s 2024 halving event.

Speaking during OJK’s April 2026 Monthly Board of Commissioners Meeting on Tuesday, May 5, Adi Budiarso, Chief Executive of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Asset Supervision at OJK, explained that the recent correction was largely driven by global market conditions.

“This is a high base effect rather than a weakening of fundamentals. It is aligned with global conditions, where the crypto market capitalization has fallen around 45 percent from its all-time high of US$4.2 trillion in October 2025 to around US$2.3 trillion in March 2026,” Adi said.

According to OJK data, Indonesia’s crypto transactions reached Rp28.04 trillion in March 2026, consisting of Rp22.24 trillion in spot trading and Rp5.8 trillion in derivatives transactions.

Domestic crypto spot trading value declined 4.7 percent month-on-month from Rp24.33 trillion in February 2026 to Rp22.24 trillion in March 2026. Meanwhile, total crypto trading transactions between January and March 2026 reached Rp75.83 trillion.

Investors Shift Toward Defensive Strategies

Tokocrypto CEO Calvin Kizana said the slowdown in local crypto transactions cannot be separated from global risk-off sentiment affecting high-risk assets.

“We see the slowdown in crypto transactions during March 2026 as largely influenced by increasing global risk-off sentiment. Investors are becoming more cautious due to persistent volatility, rising geopolitical uncertainty, and continued concerns over the direction of the US Federal Reserve’s interest rate policy,” Calvin said.

Despite the market downturn, Calvin stressed that investor interest in crypto assets has not disappeared. Instead, investors are becoming more selective and defensive in managing their portfolios.

“Investors are not fully exiting the crypto market. What we are seeing is a strategic shift. Some investors are reducing exposure to more speculative assets and moving toward more liquid or stable assets such as Bitcoin, Ethereum, stablecoins, and even gold-backed assets. This is better understood as a wait-and-see phase,” he added.

OJK data showed that the number of crypto consumers in Indonesia reached 21.37 million accounts as of March 2026, posting a modest monthly increase. The growth indicates that public confidence in the digital asset industry remains relatively strong despite ongoing market consolidation.

“There is still confidence among the public that crypto markets can positively contribute to their investment portfolios. The increase in investors during a consolidation phase shows that many Indonesians still view crypto as an opportunity to generate positive returns through trading activities, which they hope can improve their economic conditions and quality of life,” Calvin said.

Recovery Potential in Q2 2026

Calvin believes Indonesia’s crypto market could gradually recover during the second quarter of 2026, especially after Bitcoin reclaimed the psychological level of US$80,000 in early May.

“Bitcoin remains the main barometer for crypto market sentiment. When BTC manages to hold above important levels such as the US$78,000 to US$80,000 range, investor confidence generally starts to improve. However, this recovery may still be selective as the market continues to monitor macroeconomic conditions, inflation, geopolitical developments, and global monetary policy,” he explained.

Tokocrypto also identified several catalysts that could support renewed trading activity in Indonesia. These include greater clarity on US Federal Reserve interest rate direction, easing geopolitical tensions, improved global liquidity, and more competitive crypto tax policies.

Calvin emphasized that tax adjustments could play a significant role in strengthening Indonesia’s domestic crypto ecosystem.

“More competitive tax policies would help improve the attractiveness of transactions conducted through officially regulated local exchanges. This is important to ensure trading activity remains within platforms supervised by regulators, so investor protection and market transparency can be maintained,” he said.

INDODAX Highlights Growing Confidence

Separately, crypto exchange INDODAX reported strong user growth and transaction contributions to the national market.

OJK recorded a 1.43 percent monthly increase in crypto users in March 2026, reaching 21.37 million users nationwide. Spot crypto transactions stood at Rp22.24 trillion, while derivatives transactions surged 14.26 percent to Rp5.80 trillion.

During the same period, INDODAX recorded 9.9 million users and trading volume totaling Rp8.45 trillion, accounting for approximately 38 percent of Indonesia’s total crypto transactions.

INDODAX CEO William Sutanto said the figures reflect growing public trust in Indonesia’s regulated crypto ecosystem.

“We view the OJK data as a positive signal for the development of Indonesia’s national crypto industry. The growth in users and transaction volume shows that public trust in regulated crypto assets continues to increase. At the same time, this creates greater responsibility for us as one of Indonesia’s largest crypto exchanges to continue strengthening platform security, improving service quality, and expanding user education,” William said in a statement on Friday.

Although the total market capitalization of Indonesia’s digital financial assets and crypto sector slightly corrected by 0.97 percent to Rp23.36 trillion compared to the previous month, industry players believe the market remains fundamentally healthy.

Stable participation from both retail and institutional investors indicates that public interest in digital assets continues to hold firm despite global market volatility driven by inflation concerns, US economic data, global interest rate policies, and geopolitical tensions.