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Santara establishes crypto-based investment
Despite warnings from financial authorities against digital currencies, local crypto asset company PT Santara Daya Inspiratama has established a cryptocurrency-based investment platform to crowdfund small and medium enterprises (SMEs)
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espite warnings from financial authorities against digital currencies, local crypto asset company PT Santara Daya Inspiratama has established a cryptocurrency-based investment platform to crowdfund small and medium enterprises (SMEs).
Santara’s cryptocurrency is called a Cyronium coin, which costs Rp 30 million (US$2,080) apiece.
By purchasing one Cyronium coin, an investor would receive a guarantee in the form of 20 grams of fine gold issued by major gold jewelry producer PT Untung Bersama Sejahtera.
Santara chief technical officer Avesena Reza told a press briefing recently that the company allowed a minimum purchase of Rp 30,000, which equals 0.001 Cyronium coin, to reach investors of all backgrounds.
He further said the money raised from investors would be channeled to SMEs. In return, investors would receive a dividend every six months.
As of July, Avesena said, Santara has received nearly Rp 300 billion in Cyronium coin purchases, which equals some 10,000 digital coins. The company, which mobilizes blockchain technology in its operations, hopes to sell up to 50,000 coins.
To date, investors from Russia and China have purchased Cyronium coins, but more than 90 percent of investors are Indonesian.
Santara, which was founded by businessman and terrorism analyst Mardigu Wowiek Prasantyo, has joined hands with eight cooperatives to select the SMEs eligible for funding from the investment platform.
Santara business development manager Satia Pradana said the company targeted to provide funds for up to 10,000 SMEs. Around 7,000 SMEs have registered for selection so far.
The company will begin to disburse the funds to selected SMEs in August.
As cryptocurrency-based investment platforms are relatively new to Indonesia, they are not yet regulated by the Financial Services Authority (OJK), which oversees the country’s financial services industry.
Earlier this year, the OJK warned the public against investing in more than a dozen entities selling cryptocurrency, saying the “suspicious product” could harm investors.
The OJK is currently discussing a draft of a new regulation on equity crowdfunding.
However, OJK spokesperson Sekar Putih Djarot told The Jakarta Post recently that cryptocurrency-based crowdfunding was not included in the scope of the draft regulation, because digital currencies are not acknowledged as a payment instrument by Bank Indonesia.
The central bank, as stated in its press statement earlier this year, said it did not acknowledge cryptocurrency because it is not categorized as a payment instrument in Government Regulation No. 7/2011 on currency.
The central bank has warned the public of the risks involved with investing in cryptocurrencies, especially due to the lack of consumer protection. (sau)
