Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 11 July 2024
Bitcoin Adoption Strategy as a Company Asset in Indonesia
Iman Patria Yudha, Raden Aswin Rahadi, Ana Noveria
Institut Teknologi Bandung, Indonesia
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10.31014/aior.1992.07.03.592
Pages: 21-37
Keywords: Bitcoin, Corporate Asset, Inflation Hedge, Shareholder Value, Risk Mitigation, Stakeholder Acceptance
Abstract
This research investigates the strategic adoption of Bitcoin as a corporate asset in Indonesia, focusing on its potential as an inflation hedge and its impact on enhancing shareholder value. Employing a mixed-method approach combining qualitative interviews and the Analytical Hierarchy Process (AHP), the study explores the challenges, risks, and opportunities associated with integrating Bitcoin into corporate financial strategies. The findings reveal that risk mitigation emerges as the primary priority for companies considering Bitcoin adoption, underscoring the need for robust strategies such as investment diversification, hedging, and scenario analysis. Stakeholder acceptance, encompassing investors, regulators, and market sentiment, is identified as the second most crucial factor, highlighting the importance of a supportive regulatory environment and investor confidence. The research also highlights the significance of analyzing price trends and optimizing asset allocation strategies. The AHP analysis identifies the Strategic Diversification approach as the most preferred alternative, aligning with Modern Portfolio Theory principles. Additionally, the study addresses accounting and financial reporting challenges associated with Bitcoin adoption, emphasizing the need for clear guidance and standards. The implementation plan outlines key aspects such as infrastructure development, education initiatives, risk management frameworks, and regulatory collaboration to facilitate the responsible integration of Bitcoin into Indonesian corporate finance strategies.
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