Indonesia’s tech leader GoTo acquires crypto platform for $8.4 million: Report

One of the technology giants in Indonesia – PT GoTo Gojek Tokopedia (known as GoTo) – has reportedly bought the local cryptocurrency exchange PT Kripto Maksima Koin for 124.84 billion rupiahs ($8.4 million). The firm said the deal is in line with its goal of becoming “a diverse hub for money management.”

Despite the negative attitude shown by the country’s central bank and some local Islamic organizations, the digital asset sector has become quite popular among Indonesians. According to a Gemini survey, the nation is the global leader in crypto adoption, sharing first place with Brazil.

GoTo enters the crypto universe

Recent coverage by Reuters informed that Indonesia’s largest technology company – GoTo – bought 100% of the shares of cryptocurrency exchange PT Kripto Maksima Koin for almost $8.5 million.

The firm, which raised $1.1 billion in an IPO a few months ago, predicted that blockchain technology will play an important role in “the future of finance.” Despite the deal, GoTo did not share any further plans.

PT Kripto Maksima Koin is among the 25 cryptocurrency platforms that received licenses from Indonesia’s Commodity Futures Trading Regulatory Agency (known as Bappebti).

Interest in cryptocurrency platforms in the country does not begin with GoTo. At the end of 2021, the world’s largest crypto exchange – Binance – revealed its intentions to cooperate with Indonesia’s richest family – the Hartono brothers. Their common goal was to establish a digital asset investment in the nation.

A few days later, Binance doubled its efforts in Indonesia by partnering with MDI Ventures. The latter is a multi-stage venture capital firm backed by Telkom Indonesia (the country’s largest telecommunications provider).

“We are delighted to appoint MDI as our latest partner in the region. With their deep experience in the market, we are confident that we will deliver leading products to users locally,” Binance CEO Changpeng Zhao said at the time.

Record crypto adoption rate

In April this year, US-based crypto platform Gemini’s study estimated that Indonesia and Brazil are the undisputed leaders by means of cryptocurrency adoption. 41% of the citizens surveyed in both countries admitted that they had invested some of their wealth in the asset class.

The high figures come despite the hostile attitude shown by some Islamic entities towards the industry. Last November, the National Ulema Council (MUI) said that the use of crypto should be banned, citing Sharia law. The organization’s head – Asrorun Niam Soleh – argued that bitcoin and altcoins are full of “uncertainty, bets and harm” and that’s why individuals should stay away from them.

In early 2022, the Tarjih Council and the Central Board of Tajdid in Muhammadiyah issued a similar warning, deeming cryptocurrencies “haram” (or forbidden by God).

Bank of Indonesia is also against the asset class. Several months ago, the institution vowed to “fight” digital assets that are allegedly harming the country’s financial network by launching a central bank digital currency (CBDC).