Exclusive, Jerry Sambuaga Confirms Crypto Is An Asset, Not Currency

Crypto is now a prima donna. Apart from being an investment instrument, crypto is also a means of payment in foreign countries. However, the Indonesian government does not consider crypto as a currency. This was confirmed by Dr. Jerry Sambuaga, Deputy Minister of Trade of the Republic of Indonesia. According to him, crypto is a commodity asset or also known as a crypto asset. The only legal instrument of payment in Indonesia is rupiah.

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So far, only El Salvador has declared crypto as a means of payment in its country. Later in Chile began to allow crypto owners to buy real-estate with Bitcoin. Technology companies such as Sequoia Holdings LLC, headquartered in Virginia, United States, allow employees to receive salaries in cryptocurrency.

How about Indonesia? According to Dr. Jerry Sambuaga, the Indonesian government firmly positions crypto as an asset, not as a means of payment or currency. “I want to say that crypto is not a means of payment. Crypto is a commodity asset. The only legal tender in Indonesia is rupiah. Dollars cannot be used as a means of payment in Indonesia. So crypto is not a means of payment, but an asset," he said.

What Indonesia is implementing is the same as what is happening in other parts of the world. Call it China, Canada, Russia, Australia, European Union countries, etc., which still prohibit the use of crypto as a means of payment. Therefore, the development and supervision of crypto assets is under the auspices of the Commodity Futures Trading Supervisory Agency (Bappekti) of the Ministry of Trade.

Before making a purchase of crypto assets, there is nothing wrong with asking CoFTRA about traders or traders and which crypto tokens have been recognized as legal in Indonesia. Currently in accordance with CoFTRA's regulation no 7 of 2020 concerning the Determination of the List of Crypto Assets that can be Traded in the Physical Crypto Asset Market. There are now 299 crypto tokens registered. These include Bitcoin, Ethereum, Tether, Xrp/ripple, Bitcoin cash, Binance coin, Polkadot, Chainlink, Lightcoin and others.

That's why Jerry's advice is to be careful before buying crypto assets. “Don't hesitate to check whether the crypto assets being offered are legal or otherwise. Once again, be careful before buying," he said to Iqbal Irsyad, Edy Suherli, Savic Rabos and Rifai from VOI who visited him at the office of the Ministry of Industry and Trade, Gambir, Central Jakarta recently. Here's the full excerpt.

What is crypto and to what extent are Indonesians familiar with crypto according to your observations?

Crypto is a hit right now. Many people, especially the younger generation, are enthusiastic and excited to see the development of this crypto in Indonesia. But before we talk at length, I want to say first that crypto is not a means of payment. Crypto is a commodity asset. The only legal tender in Indonesia is rupiah. Dollars cannot be used as a means of payment in Indonesia. So crypto is not a means of payment, but an asset.

Crypto is an asset, the name is crypto assets or crypto assets if you want in English. Abroad people call it crypto currency, but here it is only as an asset, in this case a crypto asset. This is what we need to convey explicitly to the public so that they have the same understanding.

What are the regulations for crypto in Indonesia?

Since crypto is defined as a commodity the logical consequence is that it is regulated by the Ministry of Commerce, not other institutions. I want to give a little information about the development from year to year. In 2020, from January to December, people buying and selling crypto assets in Indonesia have reached IDR 65 trillion. The following year 2021 the figure will increase to IDR 859.4 trillion. The increase is very significant.

Then the total customers who made purchases until February 2022 were 11.8 million. In 2020 the number is only 2 million. This is a tremendous potential. Therefore, we consider it necessary to interpret it comprehensively in an ecosystem. We see that in this condition, we are not only talking about commercialization or transactions or trade, but we want to form a healthy ecosystem for all. Especially for consumer protection. How consumers who buy and sell crypto assets are safe and protected.

So what's the next step?

In the near future, God willing, we will launch a crypto exchange. The mechanism for trading crypto assets can later be carried out on the crypto exchange. So far, it is still through traders or traders.

With the existence of a crypto exchange, the ecosystem is much better. Why? With the exchange, there will be clearing, there will be a more orderly and neat record, and a clearer record. So that security between all stakeholders in the stock exchange, starting from actors, traders, consumers can be formed in a good integration. This is what is needed and its derivatives are numerous.

With the exchange can provide protection to consumers. It also prevents criminal acts of money laundering, terrorism financing, drugs, etc. Overseas many use crypto for such transactions. That's why we need a healthy, orderly, well-regulated ecosystem. And become one unit, starting from the actors, traders, consumers. This is all created and can be achieved when this crypto exchange is realized.

How ready is this crypto exchange?

We are now setting up all the devices and making sure they are secure. Like now, if people want to buy and sell through traders, they must be registered with CoFTRA.

When can this crypto exchange be launched?

Hopefully this year, at the latest by the end of the year. Now we are preparing everything.

So far, what are the complaints from the public to Bappekti about cryptocurrencies?

Alhamdulillah and Praise God until now, we have not received any complaints that are specific to crypto. Because we really emphasize the regulation and protection of all involved. We will make sure that everything goes well. Later when there is a crypto exchange it will be more organized and secure.

When buying crypto, people believe that there is value in the crypto token they buy. The analogy is like buying gold. After buying, you don't have to sell it right away if you don't need money. Sometime after a few years the value will go up. Crypto too. There is a crypto activist who regrets having sold his Bitcoin for 36 cents, even though he bought it for 5 cents in 2011. Now the Bitcoin price is 700 million. I guess so, so don't look at this short term, but long term.

Crypto is technology, we cannot prevent it. In the past, cellphones could only make calls, sms and simple games. Now everything is done through a smartphone, starting from calling, chatting, browsing, ordering food, finding transportation, and much more. We must be adaptive to technology so as not to be left behind. As long as we believe crypto has value and can be a tool for investment I think there is no problem.

Indeed, Bappekti and the Ministry of Trade need to intensify literacy about crypto so that the public understands better and when they invest in a crypto token, they don't make the wrong choice. There are three things to note about the development of this crypto; must be addressed wisely, adaptively, and with clear regulations.

So is this cryptocurrency something that has a chance and can be exported as a trading commodity as well?

Yes, this is a high opportunity and why don't we develop it. The number of transactions and players joining as I said earlier is very large and continues to grow. We do not abandon conventional products for export such as iron, coal, steel, nickel, CPO, etc. And in 2021 our export value is $230 billion US dollars. Our trade balance is the highest in the last 15 years.

Later, if we can export crypto products, there will be no need to use containers like conventional products so far. Enough with our product gadgets have been purchased by Africans for example or London for example. That makes you proud.

Some time ago there was a scene about the crypto token created by Anang Hermansyah, his name was Asix, how do you see this?

How to ensure that the crypto token created by a child of this nation can meet the requirements. CoFTRA has issued Regulation No. 7 of 2020; These conditions include being in the top 500 crypto market platforms abroad, meaning that they must be selective and competitive. He had to trade his products on overseas platforms first. We don't want people to just make crypto tokens, after that they run away.

What Anang Hermansyah did was to sell his products outside to fulfill the requirements to enter the top 500 so that he could be registered with Bappekti. This must be understood so that the public is not confused. That's why there are only 229 crypto tokens officially registered with CoFTRA. In the future this will increase because many tokens are made by the nation's children, including the Asix token. Worldwide there are currently 17,000 crypto tokens. So we really selected those who were registered with CoFTRA. What is clear is that crypto is not a means of payment, as an investment please.

What if in practice someone uses crypto as a means of payment?

We will act decisively to enforce the existing rules. It is clear that crypto in Indonesia is not a means of payment, for investment assets, please. Just report it to us if you find it.

So far in Indonesia there are several crypto exchanges, including; Indodag, Zipmex, Luno, TokoKripto, etc., how do you observe this?

Finally there are 11 registered traders, crypto physical asset traders. Later added four more, so a total of 15 traders. The names you mention are registered as traders. So far, people in Indonesia have done crypto asset transactions with all of them. So that 11.8 million customers registered with one of those traders. So before the transaction of attention; first who is the trader, secondly whether it is registered with CoFTRA or not. Third, whether the name of the crypto token has been included in the 229 registered with CoFTRA. If it's not on the list at CoFTRA, I suggest you don't make transactions. Unless you want to transact with foreign crypto platforms. Anyway, be careful and thorough before buying.

Unlike stocks, crypto has no underlaying, all based on trust with one another between the actors involved, how is this factor?

Crypto is actually no different from stocks. One of the crypto tokens, for example, can be seen how many people are interested, how many have bought, and what the current value of the crypto asset is through blockchain technology. Actually this can be a benchmark for those who are interested in deciding to buy or not. Everything is based on supply and demand. One that can be used as a handle is blockchain technology itself. Because this technology is a technology that allows anyone and at any time to access that information. This system cannot be interfered with. This provides many opportunities for the world community to see it transparently.

Is it taxable for those who play in the crypto sector?

So far, those registered with CoFTRA, the tax is imposed on traders who sell. This issue is actually the Ministry of Finance's domain. Later, when the exchange exists, we want to make sure that all types of trading activities are subject to taxation. We will leave the amount to the Ministry of Finance. So trading in the crypto sector should ideally be taxed.

Health is the main key in activity. When the body begins to be unhealthy, daily activities will be disrupted. That's why Dr. Jerry Sambuaga, Deputy Minister of Trade in the Advanced Indonesia Cabinet, is very concerned about this matter so that its activities run smoothly.

“I take care of my health every day by taking multi-vitamins, honey, zinc, and others. Basically, there are eight types,” said the man who was born on July 2, 1985.

That's not enough, he still basks every morning when the sun shines. "Some say sunbathing is at 10:00 in the morning. But because I have to leave early in the morning, I sunbathe earlier at home. When I arrived at the office, I continued to sunbathe for a while and just started my daily activities," said Jerry, who has an office at the Ministry of Trade, Jalan MI Ridwan Rais, Gambir, Central Jakarta.

It turns out that this is what makes the son of veteran politician Theo L. Sambuaga confident or confident. “I am confident and confident that my physical condition is healthy. That way activities can be carried out smoothly," he said.

How about sports? Admittedly for sports must be improved again. “I try more often because so far I haven't been able to because of time constraints. So far I have been jogging, later I will find more time so that the intensity can be increased,” he admits.

Even though he has increased his vitamin intake, in terms of eating, Jerry is even more excited during the pandemic. He thinks that during this pandemic, food intake must be increased to increase the body's immunity, especially foods that contain protein.

Apparently, the result was his body weight increased to eight kilograms. "Because I eat it diligently during this pandemic. I believe that eating a lot will increase energy and increase immunity. But the effect is that my body weight has increased by up to eight kilos during the pandemic. I have a stronger motivation to exercise so that I can lose weight,” he said.

Give thanks

Jerry is always grateful for everything that God has given so far, such as sustenance and health. “Every morning I pray and give thanks, thanking God for a healthy life. When we are healthy, we can do various activities,” he said.

One more thing, said Jerry, when doing something should be happy. “I believe a happy heart is medicine. We must be cheerful. By being like that we will live this life lightly," he continued.

Busy with his duties as Deputy Minister of Trade, Jerry rarely travels. The task of visiting areas from Sabang to Merauke for him is like traveling. What he did was check on the issue of warehouse receipts, how about trade issues in the country. He also coordinated with the Head of Service to check the prices of basic commodities in the market.

"I rarely travel, but I do many work visits outside the city (region) to monitor directly in the field. Yes, I think of it as traveling," he said.

What he hears most often is public complaints about certain basic necessities that are scarce in the market. "Oh, it turns out the goods haven't arrived yet. Our task is how to provide goods to the public, namely by ensuring that goods are available in the market,” he explained.

Even though he is busy with state affairs, he tries to share his attention with his family. On duty from one island to another, this week in Java, next week in Sumatra, then Kalimantan, Papua, Sulawesi, Maluku, NTB, and NTT. Even so, communication with his wife and children must be maintained. When there are no important activities, Jerry will maximize Sundays for quality time with his family.

Process

Jerry is a figure who excels in education. After finishing high school in Jakarta, he continued his studies in politics from the undergraduate, postgraduate, and doctoral levels. He holds a Bachelor of Arts in Politics from the University of San Francisco (2006), then a Master of International Affairs (MIA) in International Security Policy from the School of International and Public Affairs (SIPA), Columbia University, New York USA (2008) . He won a Doctorate in Political Science from the University of Indonesia (2016).

Prior to being trusted as Deputy Minister of Trade, he was a member of Commission I DPR RI from the Golkar Party (North Sulawesi Dapil). Besides being a member of the board, Jerry is also active as a lecturer at various universities. This bespectacled man is listed as a lecturer in Government and Political Science at Pelita Harapan University, Sam Ratulangi University, London School of Public Relations, Pertamina University, Paramadina University, and University of Indonesia.

To get what he has now, is not an easy matter. He had to study hard until he was able to complete his education from the S1, S2 and S3 levels at the age of 31 years. This makes him the youngest Doctor of Political Science from the University of Indonesia.

In addition to studying hard to achieve success, there is one message that he conveys to the younger generation to open their eyes and ears, hang out with as many friends as possible from different backgrounds, ethnicities, tastes, religions. This is done so as not to get caught up in exclusivity.

“Our nation is big and rich with different tribes, races and religions. This should be utilized by us hanging out with friends as much as possible. Remember the motto of our country is Bhinneka Tunggal Ika, even though it is different from Papua to Aceh, we are one, "said Jerry who is also active in a number of mass organizations such as the Kosgoro Entrepreneurs Association 1957, the Indonesian Youth National Committee (KNPI), the Indonesian Youth Reform Force (AMPI), the Youth Force Golkar Party (AMPG) to the Golkar Party DPP management.

To achieve something he emphasizes the most is the process. “Never think about achieving something instantly. Follow the right process, and rest assured that the process will not betray the results. Now, there are so many people who don't want to follow the process, they want it to be instant," he said.

In addition, it must be adaptive to the development of science and technology. "Don't be against the development of science and technology, which is growing rapidly. Indeed, advances in science and technology do not all have a positive impact, there are also negative ones. It's just a matter of how we minimize the negative side and optimize the positive side," said Jerry Sambuaga, ending the conversation.

“I want to say that crypto is not a means of payment. Crypto is a commodity asset. The only legal tender in Indonesia is rupiah. Dollars cannot be used as a means of payment in Indonesia. So crypto is not a means of payment, but an asset."

Jerry Sambuaga