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Starting August 1, Indonesia’s Ministry of Finance will implement a significant increase in tax rates for cryptocurrency transactions, as reported by Reuters on July 30, 2025. Domestic exchange sellers will now incur a 0.21% tax rate, double the former 0.1%, while sellers using foreign platforms will face a 1% rate, a considerable rise from the previous 0.2%. Meanwhile, buyers will no longer be subject to the previous VAT range of 0.11% to 0.22%, as they will be completely exempt moving forward. This new tax framework aims to reshape the financial equilibrium within Indonesia’s cryptocurrency sector.
How Will the New Tax Structure Affect Sellers?
Under the revised tax regulations, sellers on domestic exchanges will now see rates increase to 0.21%, effectively doubling. Similarly, entrepreneurs operating through foreign exchanges will experience a fivefold increase to a 1% rate. This development signifies a key change in the cost structure for those actively trading in the digital currency domain.
Are Miners Facing Changes Too?
The updated tax regulations also affect the realm of cryptocurrency mining. The VAT applicable to mining will rise from 1.1% to 2.2%. Moreover, the current 0.1% special income tax specific to miners will be phased out by 2026, shifting miner incomes into the general income tax category.
Remarkably, this significant tax hike is unlikely to dampen foreign interest in the burgeoning Indonesian crypto market. In an encouraging move, Hong Kong-based OSL secured an agreement in June 2025, acquiring a 90% stake in a domestic crypto exchange managed by Evergreen Crest, an Indonesian company, for a sum of $15 million.
OSL highlighted the “young population, robust economic base, and swift cryptocurrency adoption” of Indonesia as major growth drivers in their regulatory submission.
This notable acquisition strengthens Indonesia’s appeal, ensuring that the cryptocurrency market remains a focal point for international investment, regardless of fluctuating tax landscapes.
Key insights gained from these developments include:
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Tax rates for domestic and foreign exchange sellers in Indonesia increase significantly.
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Miners subjected to higher VAT with removal of a specific income tax scheduled.
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International firms like OSL express continued interest despite higher taxes.
Indonesia’s updated taxation policy on cryptocurrency transactions presents a new dynamic, highlighting a willingness to cultivate its fiscal policies while still attracting global business investments. The stronger measures appear designed to harness the economic benefits of digital currency trading, supporting sustainable growth within this emerging market.