Institutional framework for NFT governance in Indonesia: a proposal for a specialized NFT authority

Abstract

Non-Fungible Tokens (NFTs) have emerged as a transformative component of Indonesia’s digital economy, enabling new forms of value creation in art, culture and finance. However, the current regulatory framework remains fragmented, with overlapping responsibilities across financial, intellectual property, trade and digital communications authorities. This research adopts a combined normative juridical analysis (de lege lata) and institutional impact assessment (de lege ferenda), supported by comparative study of global regulatory approaches. The findings demonstrate that existing Indonesian regulations do not sufficiently address the unique characteristics of NFTs, particularly their hybrid nature as digital property, investment assets and instruments of electronic commerce. Additional challenges arise from cross-border transactions, decentralized autonomous organizations (DAOs) and the absence of clear enforcement mechanisms. To overcome these gaps, the study proposes a phased regulatory roadmap: in the short term, a joint decree among relevant ministries and agencies; in the medium term, a dedicated coordination desk under a coordinating ministry; and in the long term, the establishment of a specialized NFT authority. This staged approach balances flexibility with institutional strength, providing legal certainty, investor and creator protection, and alignment with international best practices. Ultimately, Indonesia can leverage NFT governance not only as a domestic legal innovation but also as a strategic opportunity to position itself as a regional hub for digital asset regulation in Southeast Asia.