Indonesia’s Crypto Tax Shake-Up: What You Need to Know

Starting August 1, Indonesia is stepping up its game within the crypto world by tightening tax rules on digital currency trades. This daring move is geared toward capturing an even bigger slice of revenue from a sector that is now more popular than traditional stock markets, boasting over 20 million users.

Targeting Offshore Activity with New Tax Rates

For those trading on home turf, the tax on transaction values will rise modestly from 0.1% to 0.21%. But for traders using foreign platforms, brace yourself—the tax jumps sharply from 0.2% to a hefty 1%. This is a transparent signal that Indonesia is seeking to reign in offshore activity and boost domestic trade.

In a move to make things easier for local buyers, the federal government has removed the value-added tax (VAT), which previously ranged from 0.11% to 0.22% depending on the asset type.

Mining Gets a Tax Makeover

Crypto mining is not escaping the tax overhaul either. The VAT on mining activities is doubling from 1.1% to 2.2%. Additionally, the 0.1% special income tax on mining has been scrapped. From 2026, miners will fall under the standard personal or corporate income tax brackets.

Also Read: Global Crypto Adoption Report 2025

Industry Reaction: A Cautious Optimism

Tokocrypto, a Binance-backed exchange operating in Indonesia, cautiously welcomed these latest measures. They see it as a step towards reclassifying crypto from a commodity to a financial asset. However, they’re asking for a one-month grace period for businesses to regulate to those changes easily.

The exchange also emphasized the necessity for stricter tax enforcement on foreign exchanges and suggested that fiscal incentives could help balance what they view as a comparatively high tax burden, especially compared to the capital gains tax on stocks.

With the crypto market in Indonesia seeing tremendous growth—transaction values tripled in 2024, reaching over $39 billion—these tax policies are a big stride towards regulating and formalizing the country’s burgeoning digital asset space. It’s also an effort to create a good playing field for each domestic and international platforms.

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