Why Blockchain is Critical for Indonesia?
Indonesia is trapped in an imbalanced economic system where 1% of the population controls 70% of the nation’s assets, while 65 million MSMEs struggle to access capital.
Blockchain is the surgical knife to dissect this festering wound. This technology enables economic power redistribution through decentralization.
With blockchain, we can bypass exploitative structures and build a participatory economy where farmers in Garut can connect directly with global investors without relying on banks or loan sharks.
Real-world examples include coffee farmers in Benguet, Philippines, who successfully tokenized their farms on the CoffeeCoin platform, linking them directly to European buyers.
Similarly, Dubai’s Farmsent.io cuts out agricultural commodity middlemen, directly connecting farmers to Middle Eastern markets.
Blockchain is not just technology—it is a grassroots revolution against inequality, creating an inclusive economic future.
What is Blockchain’s Benefits for Indonesia?
Weapon Against the Status Quo Blockchain’s greatest advantage for Indonesia is its ability to demolish economic feudalism.
Consider the Indonesia Stock Exchange (IDX): only 10% of the population participates in the stock market, while 90% remain spectators.
President Prabowo’s controversial statement, “Stock market investing is like gambling,” rings true, as the IDX resembles a casino, with the IHSG (Indonesia Composite Index) as its slot machine.
This evident in the IDX’s 2023 Annual Report, which shows that out of 912 listed companies, only 200 (21.9%) are categorized as liquid and fundamentally strong (LQ45/IDX80).
A University of Indonesia study revealed that 65% of IDX-listed stocks have a P/E ratio >100 (indicating overvaluation) and have not paid dividends for three consecutive years.
In contrast, Singapore’s SGX reports only 15% of stocks with a P/E ratio >50. Cases like AsiiM (2021), where stock prices surged 2000% in three months without clear fundamentals, highlight systemic flaws.
To reform this, blockchain can serve as a hybrid system to restore transparency. For example: Delisting 500+ speculative stocks that have not paid dividends for over three years, Mandating all listed companies to tokenize 10% of their shares on blockchain for ownership transparency and Introducing “social shares” on the IDX, requiring 5% of dividends to fund programs like free nutritious meals.
Blockchain can also empower workers. Tokenizing factories allows employees to own a percentage of the company via tokens, creating a win-win: workers gain ownership stakes without forcing owners to perpetually raise wages. Applying blockchain to government procurement systems could also dismantle corruption networks.
Why Should the Younger Generation Understand Blockchain?
Blockchain is the youth’s weapon to dismantle a system that stifles creativity. Indonesian youth must stop glorifying corporate servitude.
Data from the Ministry of Trade shows 21.4 million crypto investors in 2024, with 70% under 35. While crypto trading is a start, it’s not enough.
Young people must build their own ecosystems. For instance by joining with DAOs (Decentralized Autonomous Organizations). DAO could manage village funds, ending dependence on corrupt local leaders.
The second is by join with Emulating Brazil’s CryptoFavela, where favela youth created a blockchain-based transaction system to bypass gang control, Indonesian youth could use blockchain to break free from market thugs.
Blockchain-savvy youth are a threat to the status quo—they can become digital Robin Hoods, redistributing power from oligarchs to the people.
How Blockchain Will Transform Indonesia’s Economy?
Blockchain will flip Indonesia’s economy from “conglomerate-centric” to “people-centric.” Radical examples include: Empowered Farmers, such as in India’s using AgriChain to cut seven supply chain layers between onion farmers and consumers.
In Indonesia, this could eliminate middlemen who exploit 300% profit margins. Blockchain can make workers as Owners by tokenizing garment factories in Tangerang could grant workers equity stakes via tokens, not just meager wages.
Also, blockchain can make energy for the People. For example village in Flores could tokenize solar energy and sell it to cities, bypassing PLN’s frequent blackouts.
The 1998 economic crisis stemmed from centralized economic power. Blockchain decentralizes this power. If the 1998 reforms only changed regimes, blockchain changes the system itself.
Indonesia as a Global Digital Economy Leader
Indonesia’s economy is critically ill: 70% of assets are controlled by 1% of the population. Blockchain levels the playing field through mass tokenization leading in RWA (Real-World Asset tokenization) is no pipe dream.
In Kenya, Grassroots Economics built a blockchain-based community currency for 200,000 people. With 270 million citizens, Indonesia’s potential is monumental.
Stop asking “How?” Start, but asking “When?”. If we fail to act, foreign corporations will buy Indonesia’s assets cheaply via RWA—as seen in carbon credit schemes exploiting forests. It’s time for Indonesians to master blockchain or remain enslaved in their own land.
Blockchain is not for techno-utopians. It is a class war in the digital age. Amid global economic uncertainty, systemic change is inevitable.
This is why IRWATA (Indonesia Real World Asset Tokenization Association)was born—through collaboration between local and global talents—to start a revolution. To pioneer. To create an inclusive economic system. To declare to the world: Indonesia is the rising giant of the digital economy.
Now is the time to begin!
By Sabdo Yusmintiarto, Head of Indonesia Real World Asset Tokenization Association
