Indonesia will impose higher taxes on cryptocurrency transactions beginning August 1, including significantly larger levies on trades carried out through overseas exchanges, according to a new regulation issued by the finance ministry.
Under the revised policy, the tax on sellers of crypto assets through domestic exchanges will rise to 0.21% of each transaction, up from 0.1%. Meanwhile, those using foreign-based platforms will face a sharper increase to 1%, compared to the previous 0.2%. The changes come as the country moves to treat cryptocurrencies as financial assets rather than commodities.
The total transaction value of crypto assets in Indonesia tripled in 2024 from the previous year, reaching over 650 trillion rupiah ($39.67 billion), based on data from regulators. The country now has more than 20 million users on licensed crypto exchanges, surpassing the number of investors in the domestic stock market.
VAT Adjustments and Mining Tax Changes
As part of the new framework, buyers of crypto assets will no longer be required to pay value-added tax (VAT). Previously, buyers paid VAT of between 0.11% and 0.22% on transactions. The government also doubled the VAT rate on crypto mining activities from 1.1% to 2.2%.
Additionally, it removed the 0.1% special income tax on mining income, meaning mining profits will instead be subject to standard personal or corporate income tax rates starting in 2026. These measures are intended to align Indonesia’s tax treatment of crypto assets more closely with its treatment of other financial products.
Meanwhile, officials have argued that the revised policy aims to ensure fair tax contributions from the growing digital asset market, while closing gaps that could encourage the use of unregulated foreign exchanges.
Industry Response and Calls for Flexibility
Binance-backed Tokocrypto, one of the country’s major crypto exchanges, said it supported the government’s reclassification of digital assets as financial instruments. However, it urged authorities to grant at least a month-long grace period to allow industry players to adapt to the higher tax rates.
“We also emphasize the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms,” Tokocrypto said in a statement.
The company added that the new tax rate for crypto transactions remains higher than the capital gains tax applied to stock market investments. It called for additional fiscal measures to encourage innovation within the domestic crypto sector.
Indonesia has taken a gradual approach to regulating cryptocurrencies, allowing them to be legally traded as investment assets, though they remain prohibited as a means of payment.
