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Key Notes
- Indonesia’s crypto transaction volume tripled in 2024, with over 20 million users on exchanges.
- Crypto buyers will no longer have to pay VAT.
- However, cryptocurrency miners will see a 100% rise in VAT.
The finance ministry of Indonesia will reportedly bring a significant policy shift on cryptocurrency taxes in August.
The regulator will increase the domestic trades tax from 0.1% to 0.21%, while foreign exchange trades face a 1% tax, up from 0.2%, according to a Reuters report on July 30.
Moreover, the new policy removes friction for those who purchase digital assets. The report says that crypto buyers will no longer need to pay Value Added Tax (VAT), which was previously between 0.11% and 0.22%.
However, the VAT on crypto mining increases to 2.2% from 1.1%, and a special 0.1% mining income tax is removed; mining income will now be taxed under normal corporate or personal rates in 2026.
Inevitable Crypto Growth
The new tax rates come as the Southeast Asian country has been a very active region for the crypto industry.
According to Reuters, the total cryptocurrency transaction volume tripled to 650 trillion rupiah ($39.67 billion) in 2024. The financial regulator claimed that over 20 million Indonesians have used digital currency crypto exchanges last year.
Binance-backed Tokocrypto, which received the Physical Crypto Asset Trader license in September 2024, welcomed the policy shift toward treating crypto as a financial asset but requested a one-month grace period for companies to adjust.
These regulatory changes signify Indonesia’s shift in classifying crypto from a commodity to a financial asset. This aligns the blockchain-based assets more closely with stocks and bonds.
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