The Indonesian government has shown great interest in cryptocurrencies – but the general elections in February could change things for the industry, especially if the leadership changes.
Not all of the leading candidates have been vocal about cryptocurrencies, but their comments offer clues about the direction the industry may be heading under their leadership.
For example, presidential and vice-presidential candidates Anies Baswedan and Muhaimin Iskandar have been relatively quiet on cryptocurrency issues. However, they represent the opposition, and the duo has plans to reform current policies, which may have some consequences for the cryptocurrency sector.
The other candidate pair consists of presidential candidate Jangar Prannoo and his running mate Mahfuz MD, a veteran politician and constitutional law expert. They didn't talk about cryptocurrencies during the campaign, but in 2022, when non-fungible tokens (NFTs) were having a moment, Janjar, the governor of Central Java at the time, praised the creativity of NFTs.
He saw Janjar Ghazali, one of Indonesia's NFT success stories, as an inspiration to the country's youth. However, he made sure to remind him of the importance of paying taxes to maintain the country's well-being.
The most vocal candidate on crypto so far is Gebran Rakabuming Raka, the controversial running mate of current Defense Minister Prabowo Subianto. Raka is the son of President Widodo and a strong supporter of digitalization – especially with blockchain and cryptocurrencies.
Meanwhile, Prabowo said his government will strengthen supervision of tax compliance among stock and cryptocurrency traders to combat tax evasion.
Together, Prabowo and Raka appear likely to continue the country's current policies and attitudes towards cryptocurrencies – and perhaps embrace more crypto-friendly regulatory changes.
Indonesia's general elections are scheduled to begin on February 14.
