Indonesia’s Crypto Tax Revenues Rise, Then Fall Amid Volatility
Indonesia’s government has collected between IDR 500 billion and IDR 600 billion annually in revenue since introducing taxes on crypto transactions, officials from the Ministry of Finance reported on July 31. However, recent figures show a sharp decline in revenue this year, reflecting the volatile nature of digital assets. During a media briefing at the Directorate General of Taxes (DGT) office in Jakarta, Bimo Wijayanto, Director General of Taxes, explained that despite initial growth, crypto tax revenue is now facing significant fluctuations. “Throughout last year, over the two to three years since its introduction, revenue has continued to increase. Last year, if I’m not mistaken, revenue was around IDR 500-600 billion per year,” he said. The crypto tax, introduced in 2022, applies a Final Value Added Tax (VAT) and Article 22 Income Tax (PPh) on crypto commodity transactions. Officials say it was designed to formalize crypto trading within Indonesia’s tax system. Crypto Tax Surge Followed by Sharp Decline Hestu Yoga Saksama, Director of Tax Regulations I at the DGT, outlined the annual revenue trends since the tax’s rollout. In 2022, the government collected approximately Rp 246 billion. Revenue dipped slightly to Rp 220 billion in 2023 but surged to Rp 620 billion in 2024, driven by higher trading activity. This year, however, crypto tax revenue has dropped steeply. As of mid-2025, the government has only collected around IDR 115 billion. Officials attribute the decrease to shifting crypto market conditions and price volatility. New Regulations and Coordinated Oversight To strengthen oversight and adapt to market dynamics, the Ministry of Finance has issued several new regulations in 2025. These include PMK Number 50 concerning VAT and Income Tax on Crypto Asset Trading Transactions; PMK Number 53, which amends taxable value provisions; and PMK Number 54, which updates tax rules under the Core Tax Administration System. Yon Arsal, an Expert Staff Member to the Minister of Finance for Tax Compliance, emphasised the need for improved coordination with regulatory bodies, such as the Financial Services Authority (OJK). “With this new regulation, it’s not enough to simply expand the scope. We must also coordinate,” Arsal said. Despite short-term declines, officials remain focused on building a consistent tax framework to accommodate crypto’s unique risks and potential. They stress that future tax revenue will largely depend on transaction volumes and continued market development.