Indonesia ranks third globally in crypto adoption, with over 20.9 million users in 2024. The rapid growth is fueled by a mix of technological advancements, shifting consumer behavior, and cultural dynamics.
While some embrace crypto as a financial revolution, others remain skeptical due to regulatory uncertainty, security concerns, and volatility. Understanding the psychological drivers behind crypto adoption can help businesses, policymakers, and investors navigate and capitalize on this evolving landscape.
Read more: Is Indonesia Ready to Become Crypto-Friendly?
Understanding the Key Motivators
Two recent studies provide valuable insights into what drives Indonesians to embrace cryptocurrency. The first study, “The Intention to Adopting Cryptocurrency of Jakarta Community” (DIJMS), applies the Theory of Planned Behavior (TPB) to analyze adoption factors in Jakarta.
The second study, “Analysis of Consumer Motivation for Using Cryptocurrency in Indonesia” (Budapest International Research and Critics Institute-Journal), uses the Unified Theory of Acceptance and Use of Technology (UTAUT) to examine behavioral intentions nationwide.
1. The Role of Attitudes and Performance Expectancy
Both studies highlight that attitude and performance expectancy are the strongest predictors of crypto adoption in Indonesia. The DIJMS research found that attitude was the only significant factor affecting adoption, meaning personal beliefs about crypto’s benefits strongly influence decisions.
Similarly, the Budapest study found that performance expectancy—the belief that crypto can improve financial outcomes—has a significant positive impact. This suggests that Indonesians adopt crypto based on perceived profitability and benefits, rather than external pressures or ease of use. Brands should focus on highlighting crypto’s financial potential rather than relying solely on hype.
2. The Influence of Social Norms and Peer Pressure
The DIJMS study found that subjective norms (peer pressure) do not significantly impact adoption in Jakarta, indicating that many Jakarta-based investors rely on personal research rather than following trends. However, the Budapest study found that social influence plays a crucial role nationwide, meaning people in less mature crypto markets are more likely to adopt crypto if those around them are using it. In Jakarta, investors make independent decisions, but nationwide, community-driven education and social influence are key. Crypto brands should engage with local communities to build trust and awareness.
3. The Impact of Ease of Use and Effort Expectancy
The Budapest study found that effort expectancy—how easy a technology is to use—affects adoption. Users are more likely to adopt crypto if platforms are simple, intuitive, and beginner-friendly. This aligns with global fintech trends, where seamless user experience drives engagement. Crypto businesses should prioritize usability in exchange platforms and wallets, ensuring accessibility for both tech-savvy users and beginners.
4. Infrastructure and Regulatory Barriers
Facilitating conditions, such as internet access, government support, and security infrastructure, also affect adoption. The Budapest study found that access to proper resources, such as secure exchanges and legal clarity, can either enable or hinder adoption. Currently, Indonesia recognizes crypto assets under Commodity Futures Trading Regulatory Agency (Bappebti) regulations, but lacks a comprehensive legal framework for full adoption. Regulatory uncertainty remains a psychological barrier. Clearer policies and stronger security measures could encourage more Indonesians to explore crypto.
Read more: How to Get Your Projects Listed in Indonesia
Behavioral Drivers Unique to Indonesia
Beyond academic theories, Indonesia’s crypto adoption is also shaped by unique cultural and economic factors such as community trust, high mobile engagement, and a speculative mindset.
Many rely on word-of-mouth recommendations from friends, family, and influencers, with FOMO (Fear of Missing Out) driving participation, especially during bull runs like Bitcoin’s rally in 2021. Over 75% of Indonesians use mobile devices for financial transactions, making mobile-first crypto platforms highly attractive.
Distrust in traditional financial institutions also plays a role, as many Indonesians remain unbanked or underbanked, seeing crypto as a viable alternative. The high-risk appetite of Indonesian investors fuels engagement in trading competitions, airdrops, and referral programs. Religious factors also influence adoption, with Shariah compliance guiding investment choices in the country’s large Muslim population.
Regulatory uncertainty and education gaps remain challenges, with the transition from Bappebti to OJK oversight creating both confidence and hesitation. However, localized educational initiatives are helping demystify crypto and build user confidence
Given these psychological drivers, successfully entering Indonesia’s crypto market requires a strategic approach. Indonesia Crypto Network (ICN) acts as the bridge for crypto brands, helping them engage with communities, navigate regulations, and establish trust.
- Community Engagement: ICN leverages local influencers, trading groups, and crypto communities to boost adoption and brand credibility.
- Education-Based Marketing: By providing localized content and user-friendly resources, ICN helps brands address complexity concerns and improve adoption rates.
- Trust & Compliance Messaging: ICN ensures brands adhere to Indonesian regulations, easing investor concerns and enhancing credibility.
- Gamification Strategies: ICN helps brands implement trading competitions, airdrops, and referral incentives to increase engagement and retention.
With ICN’s expertise, crypto companies can position themselves effectively in one of the world’s fastest-growing digital asset markets.
