Starting August 1, Indonesia will impose a 0.21% tax on cryptocurrency transactions on domestic exchanges and a 1% tax on international exchanges.
Indonesia - the largest economy in Southeast Asia - is set to implement a policy to increase taxes on cryptocurrency transactions starting August 1, according to new regulations issued by the Ministry of Finance. This move targets both domestic and international exchanges, aiming to increase budget revenue from the rapidly developing digital asset market.
Cryptocurrency is becoming increasingly popular in Indonesia, where it is legally recognized as a commodity but absolutely prohibited as a means of payment. According to data from regulatory authorities, the total transaction value of digital assets in Indonesia more than tripled in 2024 compared to the previous year, reaching approximately $39.67 billion. The number of users on crypto asset exchanges also surpassed 20 million, exceeding the number of investors in the traditional stock market.
The new regulation raises the tax rate for sellers of digital assets from 0.1% to 0.21% of the transaction value on domestic exchanges, and from 0.2% to 1% of the transaction value on international exchanges. Conversely, the new regulation abolishes the value-added tax (VAT) for buyers of crypto assets, who previously had to pay VAT ranging from 0.11% to 0.22%.
Tax adjustments for mining and the industry's response
The Indonesian Ministry of Finance also adjusted taxes on cryptocurrency mining activities. The VAT for mining activities doubled from 1.1% to 2.2%, while the special income tax of 0.1% that was previously in place has been abolished. Starting in 2026, income from mining crypto assets will be subject to personal income tax or regular corporate income tax, depending on the entity.
Tokocrypto - the crypto asset exchange backed by Binance - welcomed the new tax framework, stating that it reflects a change in the legal classification of digital assets in Indonesia, gradually shifting from 'goods' to 'financial assets'. However, Tokocrypto proposed a one-month extension for businesses to have time to adjust for compliance.
The company also emphasized the need to enhance monitoring and enforcement of tax obligations for digital asset transactions conducted through foreign platforms, aligning with the government's tightening approach to cross-border operations. Tokocrypto called for the application of fiscal incentives to encourage innovation in the domestic crypto asset sector, noting that the 0.21% tax for domestic sellers is currently higher than the capital gains tax applicable to the stock market.
This discrepancy could hinder the growth of the domestic market if not accompanied by appropriate support policies. The new tax policy reflects Indonesia's efforts to balance attracting investment in the domestic crypto asset market and increasing budget revenue from the booming digital asset sector.
