Indonesian NFT, Economic Potential, and Legal Framework

JAKARTADAILY.ID - Non-fungible tokens, or NFTs, have become a popular trend in Indonesia. Digital artwork by Baduy, a local artist, depicted a man from the Baduy tribe, is currently on sale as an NFT in opensea.io for 0.01 ETH. Syahrini and The Goods Dept. also followed suit by launching their own lifestyle-related NFTs.

The rapid growth of NFTs in Indonesia has prompted the country's legal authorities to step up their efforts to recognize these digital tokens' unique characteristics.

However, due to the current regulatory status of crypto assets in Indonesia, NFTs are not yet regulated as such. They are not considered cryptocurrencies because the market can't determine their price.

Blockchain implementation is recognized under the existing laws and regulations. The various activities related to fund-lending in the Indonesian standard industrial business classification code are also acknowledged in the various activities.

NFTs are also a part of the digital economy in Indonesia. As of 2021, there are six NFT marketplaces emerging in Indonesia. They are TokoMall, Paras.id, Enevti, Kolektibel, Baliola, and Artsky. Compared to e-commerce marketplaces in the country, the number is insignificant. However, NFT is in its infancy, there is still room for growth.

Most digital companies operating in the country must comply with various statutory obligations. One example is the requirement for electronic system providers to register as system providers.

Aside from registering with the relevant authorities, digital and electronic platforms that operate in Indonesia are also required to register their entity and server location. Additionally, digital goods are also subject to tax. As for the future, it is still unclear how NFTs will be managed.