As the most populous nation in Southeast Asia (SEA), Indonesia’s mega population provides ample market catchment areas for blockchain and crypto industry players. In the general context in relation to the use of digital technologies for economic development, the launch by the Indonesian government in April 2018 of the Making Indonesia 4.0 Roadmap as part of a nationwide collaborative effort to prepare the country for Industry 4.0 has set the stage for the adoption and use of emerging digital technologies such as blockchain to support the growth of the country’s economy. In the particular context of e-commerce, it is notable that in 2017, the local e-commerce market was made up of 30 million Indonesian online shoppers who contributed a total of US$8 billion to the industry. With regard to the use of cryptocurrencies for Indonesia’s e-commerce industry, McKinsey & Company in its report, “The Digital Archipelago: How Online Commerce is Driving Indonesia’s Economic Development,” recommended that the government and local companies take the necessary initiatives to promote the use of cashless payment to help encourage the growth of industry — certainly music to the ears of crypto payment token issuers who are looking to enter the Indonesian market.
On the crypto regulation front, the Commodity Futures Trading Supervisory Authority (“Bappebti”) announced that cryptocurrencies such as Bitcoin are legally recognized as commodities that can be used for futures trading. Following up on this, Bappebti had in February this year issued Regulation No. 5 of 2019, which sets out the details of the regulatory framework governing the crypto-asset futures market in Indonesia. The novel approach adopted by Indonesian regulators notwithstanding, the introduction of the crypto regulatory framework, with its comprehensive scope of coverage, has had the effect of boosting investor confidence, as it provided much needed legal certainty to the local crypto market.
Through its in-depth and comprehensive coverage of Indonesia’s blockchain and crypto industry, the Indonesia Blockchain Landscape Report aims to serve as a handy reference for anyone who is interested in learning more about the industry, exploring its opportunities, and identifying the many white spaces in the market, amid strong infrastructure and policy support for blockchain as well as keen crypto interest in the population.
With that in mind, Asia Blockchain Review (ABR) presents five features of the Indonesia Blockchain Landscape Report that make it an indispensable resource for investors looking for new frontiers in blockchain and cryptocurrency.
1. Get a Holistic Overview of the Landscape
Zooming in on macro-environmental factors under the framework of a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis, the Indonesia Report explores the impact of (1) the growth prospects of Indonesia’s e-commerce industry, (2) the current outlook for the Indonesian financial technology (fintech) industry, particularly with regard to the domain of borrowing and lending, and (3) the crypto regulatory framework in Indonesia, including the compliance obligations of crypto-asset traders, crypto exchanges, crypto-asset clearing agencies and crypto-asset storage providers.
2. Take a Deep Dive into the Landscape
Building on the findings of the PESTLE analysis, the Indonesia Report sets out an evaluation of the key strengths and pain points of the local blockchain and crypto industry through a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the macro-environmental factors which have a material impact on local market conditions. Some of the Opportunities (O) identified in Indonesia include its ready market of tech-savvy consumers, as 60% of the Indonesian population is equipped with smartphones.
3. Embark on a Journey of Discovery of the Local Blockchain Industry
By highlighting notable observations and key milestones, the Indonesia Report takes an overarching view of the major developments in the local blockchain and crypto space to give readers a contextual understanding of the two domains. The notable developments include, among others, the use by state-owned Bank Negara Indonesia (BNI) of blockchain startup Hara’s blockchain-based data collection model to speed up BNI’s microcredit loan application process, the collaboration between the Indonesian government and decentralized platform operator Everest, whereby the Indonesian government will use Everest’s blockchain-based EverID and EverWallet to cryptographically and biometrically secure the national monetary distribution process in order to ensure that the intended recipients duly receive the money, as well as the use of blockchain by the city of Batam for the facilitation of agriculture tradings and provision of healthcare services.
4. Learn More About the Market Players
The Indonesia Report includes a list of major and notable local market players, including Pundi X, Tokenomy, Vexanium, and PlayGame, among others. The corporate profiles of these players set out their core competencies and funding statuses to allow readers to gauge the degree of market saturation and its distribution patterns.
5. Obtain Insights About the Landscape Straight from the Horse’s Mouth
In its final section, the Indonesia Report sets out the findings of interviews and surveys of local blockchain and crypto startups and organizations, representing a wide cross-section of the industry. These findings are synthesized into a market analysis of current observations and future trends, letting investors navigate through the local market and make informed decisions.
Published by ABR in its efforts to build a technological foundation for blockchain in the region, the Indonesia Report is part of a series of first-of-its-kind SEA Blockchain Landscape Reports that serve as essential industry resources for anyone looking to move on the opportunities abound in the blockchain and crypto space in SEA.
Watch this space for the full report when it releases in SOON.
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