Lawmakers Warn Crypto Is Only for Advanced Investors, Urge Public to Avoid FOMO

JAKARTA, Investortrust.id — Lawmakers from Indonesia’s House of Representatives warn that crypto assets are only suitable for advanced investors on Wednesday, Jan 21, 2026 in Jakarta, urging the public to avoid fear of missing out driven decisions amid rising retail participation.

Commission XI member Habib Idrus Salim Aljufri says crypto is a high risk instrument that requires deep investment knowledge and experience, making it unsuitable for beginners.

“Crypto investment is actually for those who are already advanced in investing. I advise the Indonesian public to be very cautious, because crypto and similar instruments are high risk,” Idrus says during a working meeting with the Financial Services Authority.

He says many retail investors enter the crypto market not based on fundamentals but due to psychological pressure to follow trends, commonly known as fear of missing out.

Idrus delivers the warning during a Commission XI working meeting with the Financial Services Authority at the Nusantara I Building, Parliament Complex, Senayan, Jakarta.

He adds that crypto is often misunderstood as a shortcut to wealth, when in reality it should only be managed by investors with advanced analytical capability.

“Once again, crypto is for highly educated investors who truly understand investment. For people who are just starting out, I do not recommend going straight into crypto,” he says.

Idrus also raises concern over the influence of social media content creators who promote crypto with promises of fast profits, which he says can amplify losses for inexperienced investors.

“I believe the knowledge shared by figures like Timothy Ronald may be relevant, but Indonesian society is often tempted by the desire for quick gains and FOMO, which can multiply losses,” he says.

He urges closer coordination between the Financial Services Authority, the Illegal Financial Activities Eradication Task Force, and the Ministry of Communication and Digital Affairs to swiftly take down misleading content.

Idrus further proposes that individuals providing crypto investment advice on social media should be required to hold official licenses.

Separately, financial planner and Chief Marketing Officer of Bitwewe Indonesia, Aidil Akbar Madjid, says he agrees with the parliamentary view.

“From a product and risk perspective, crypto carries risk equal to or even higher than stocks,” Aidil says.

He recommends a gradual investment path, starting from government bonds, mutual funds, and stocks before entering crypto assets.

“People should not go into crypto before they have invested in stocks, and they should not go into stocks before mutual funds or government bonds. There has to be a progression,” he says.

Meanwhile, Financial Services Authority official Friderica Widyasari Dewi reiterates that crypto assets are inherently high risk and not designed for novice investors.

“We always stress that crypto investing is for sophisticated investors who truly understand the risks involved,” Friderica says.

She adds that FOMO is particularly prevalent among younger investors, reinforcing the need for continuous financial literacy efforts.

“If FOMO exists, young people tend to follow whatever others are investing in. That is why education and literacy must continue,” she says.