Indonesia to Raise Tax Rate on Cryptocurrency Transactions Starting August 1

 Indonesia to Raise Tax Rate on Cryptocurrency Transactions Starting August 1

JAKARTA, July 30 (Reuters) – Indonesia will increase taxes on cryptocurrency transactions starting August 1, with higher rates imposed on trades carried out through foreign-based crypto exchanges. This change comes under a new regulation issued by the Ministry of Finance.

Cryptocurrencies have grown in popularity across Southeast Asia’s largest economy. While digital assets are legally traded in Indonesia, they are not recognized as a legal form of payment.

According to the country’s financial regulator, the total crypto transaction volume in 2024 tripled compared to the previous year, reaching over 650 trillion rupiah (approximately $39.67 billion USD). The number of users trading on crypto exchanges also surpassed 20 million in 2024 — even more than the number of investors participating in Indonesia’s stock market.

New Tax Rules for Crypto Traders

Under the new regulation:

Sellers on domestic (Indonesian) exchanges will pay a 0.21% tax on each transaction, up from 0.1%.

Sellers on foreign exchanges will face a higher rate of 1%, up from 0.2%.

On the positive side, buyers will no longer be subject to Value Added Tax (VAT), which was previously between 0.11% and 0.22% depending on the exchange.

Crypto Mining Tax Updates

Indonesia has also introduced new VAT rules for crypto mining:

The VAT rate on crypto mining is raised to 2.2%, from the previous 1.1%.

A previous 0.1% special income tax on mining profits has been abolished.

Starting in 2026, crypto mining income will be taxed under standard personal income tax or corporate income tax rates, depending on the entity.

Response from the Industry

Tokocrypto, a leading Indonesian crypto exchange backed by Binance, welcomed the government’s decision. The firm noted that the new regulations reflect a strategic move to reclassify cryptocurrencies as financial assets, rather than commodities.

However, Tokocrypto requested a one-month grace period for implementation, allowing crypto companies and users to adjust to the new tax system.

> “We also emphasize the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms,” the company said in a public statement.

They also called for fiscal incentives to encourage innovation in Indonesia’s growing crypto industry, noting that the new tax rates are still higher than capital gains taxes imposed on traditional stock market investors.

Summary

Indonesia is making a significant move in crypto regulation by:

Increasing tax rates on both local and foreign crypto transactions,

Removing VAT for buyers,

Raising mining VAT and aligning mining profits with regular tax systems.

This shift positions crypto as a mainstream financial asset, yet also raises concerns about competitiveness compared to traditional investments. The industry is watching closely how these changes will shape Indonesia’s digital economy and innovation landscape.

Exchange Rate: $1 = 16

,385 rupiah

Reporting by: Stefanno Sulaiman

Editing: Gayatri Suroyo and Kim Coghill