Indonesia will increase taxes on cryptocurrency transactions from 1 August, with higher rates imposed on trades conducted through overseas exchanges, according to a new regulation issued by the Ministry of Finance.
As reported by Reuters, cryptocurrencies have become a popular investment vehicle in Southeast Asia’s largest economy.
While crypto assets are legally traded in Indonesia, they cannot be used as a means of payment.
In 2024, the total transaction value of crypto assets tripled from the previous year, exceeding 650 trillion rupiah, according to data from regulators.
The number of users on crypto exchanges reached over 20 million, surpassing the number of stock market investors in the country.
Under the revised rules, sellers of crypto assets on domestic exchanges will now pay a 0.21% tax on the transaction value, up from 0.1%.
Sellers using overseas platforms face a steeper 1% tax, increased from 0.2%.
Buyers, however, will no longer be subject to value-added tax (VAT), which previously ranged from 0.11% to 0.22%.
The VAT rate on crypto mining activities will double to 2.2%, while a 0.1% special income tax for mining will be scrapped in 2026.
Income from mining will instead fall under general personal or corporate income tax rates.
Tokocrypto, a Binance-backed Indonesian exchange, welcomed the updated regulation, saying it aligns with the government’s reclassification of crypto assets from commodities to financial instruments.
However, the company urged the government to allow a grace period of at least one month for the industry to adapt to the new rules.
“We also emphasise the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms,”
Tokocrypto said in a statement, while also calling for fiscal incentives to support innovation.
The exchange noted that crypto tax rates remain higher than capital gains tax rates on stock market investments.
Featured image credit: Edited by Fintech News Indonesia, based on image by pvproductions via Freepik
