“Cryptocurrency, in a nutshell, is a form of currency that is secured by crypto. In Indonesia they are more properly referred to as crypto assets. because the sole official legal tender is the rupiah, which serves the function of a currency one can legally transact in,” Oham Dunggjo, the CEO of BTRIPS and fromer chairman of the Indonesian Blockchain Association (ABI), explained in a talkshow held by the Faculty of Administrative Sciences Universitas Indonesia (FIA UI), in collaboration with the faculty’s alumni association and the Association of Students of Commercial Administrative Sciences (FIA UI). Crypto, he added, isn’t a ‘real’ object, therefore categorised, in Indonesia, as a commodity or asset that the Commodity Futures Trading Regulatory Agency (Bappebti), a governmental agency, may trade in.
An advantage of cryptocurrency, Oham explained, is the secure technological guarantee it offers. Systems such as blockchains are largely resistant to cyber security threats. Even so, adopting cryptocurrency as a medium of payment is currently unfeasible, because the State has no control over blockchains.
Dr. Wing W Winarno MAFIS, Ak. C.A., member of a consultancy managing the implementation of Jogja Smart Province, a governmental technological iniatitive, and one of the panelists of the talkshow gave insight on the workings of blockchains. Blockchains, according to Dr. Wing’s explanation, make records of all transactions in order, thereby ensuring a high degree of accuracy in the recording or transmission of documents or information. The security of blockchains is ensured by the fact that it has remained un-hackable for many years.
Cryptocurrency is only a small part of blockchain, said Dr. Wing. Many systems, he added, are secure enough to transact in. The problem lies in currency exchange rates; cryptocurrencies can be very fluctuative in value, or, as Dr. Wing succinctly summed it up, “easy come and easy go.” He advised those intending to invest in crypto to “use spare money” in doing so.
Next, Ardy Sutedja, the chairman of Indonesia Cyber Security Forum (ICSF), warned that no technological system is 100% secure. Too many people discuss the benefits of such systems without considering their risks.
Cryptocurrency, he explained, is not a local product, “thus there might be breaches that we [Indonesians] are not aware of. To begin with anything related to energy requires sufficient digital literacy.” He warned that several countries have declared crypto a threat to national security due to the potential it harbours of “disorganising” the currency.
Also discussed in the talkshow were the role Otoritas Jasa Keuangan (Monetary Services Authority / OJK), Bank Indonesia (BI), and Bappebti in educating the public on cryptocurrency. “Bappebti is one agency out of 12 ministries/agencies included in the Waspada Task Force. Everything related to investment are monitored by this task force. Besides, the task force is tasked with mitigation: Bank Indonesia plays a role in crypto payments. Bappebti performs monitoring, and OJK provides banking services. Therefore, each plays a role in providing facility to society,” stated Tirta Karma Sanjaya, the Head of the Bureau of Market Construction and Development, Bappebti.
