Transformative Tax Changes for Cryptocurrency in Indonesia
Amidst evolving regulations, Indonesian financial authorities are poised to implement increased taxation on cryptocurrency transactions and mining activities by the end of the week. This shift will see a notable rise in tax rates, especially for trades conducted through international platforms.
Indonesia’s Imminent Cryptocurrency Tax Increase
On Wednesday, Indonesia’s Finance Ministry revealed new tax regulations impacting cryptocurrency traders and miners, set to be enforced from August 1, 2025. Finance Minister Sri Mulyani Indrawati highlighted the significance of the Minister of Finance Regulation (PMK) 50/2025 and 53/3035 in providing legal clarity and ensuring that digital asset trading aligns with the sector’s advancement.
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As reported by Reuters, these new regulations will mandate a 0.21% tax on transaction values for digital asset sales on domestic platforms, an increase from the previous 0.1%. Meanwhile, sales conducted through foreign exchanges will see a tax hike from 0.2% to 1%, starting Friday.
Interestingly, the revised guidelines have abolished the value-added tax (VAT) on crypto transactions, which previously ranged from 0.11% to 0.22%. This change was made through PMK 53/2025, which annulled articles 343 and 354 of PMK 11/2025. While digital assets considered equivalent to securities are exempt from VAT, services like providing electronic trading facilities or verifying transactions by cryptocurrency miners remain VAT liable.
For miners, Indonesia has increased the VAT rate from 1.1% to 2.2% and eliminated a special 0.1% income tax rate. This income will now be subject to either individual or corporate tax rates, starting in 2026.
Entities failing to comply with these provisions will face penalties as stipulated in the General Provisions and Tax Procedures Law.
Navigating Indonesia’s Regulatory Transition
In a recent statement, Tokocrypto called for fiscal incentives to encourage innovation in the cryptocurrency sector, pointing out that the new tax rates on crypto transactions remain higher than those for capital gains in traditional stock markets. The company stressed the need for enhanced oversight and tax enforcement, particularly for transactions executed via foreign platforms.
Data from regulatory bodies indicate that by 2024, Indonesia had over 20 million cryptocurrency exchange users, surpassing the number of stock market investors. The total transaction value for digital assets surged to $39.67 billion, and the nation achieved one of the highest adoption rates globally, ranking third, ahead of the United States and Russia in trader numbers.
Indonesian financial authorities have faced criticism for previous measures, such as banning digital assets as a direct payment method and implementing dual taxation on these assets. Critics argue these actions may have hindered the market’s growth in recent years.
However, last year marked a shift from this cautious approach to a more accommodating regulatory stance. This change aims to establish a transparent and comprehensive framework in line with international standards. The transition began in January with the transfer of industry oversight from the Commodity Futures Trading Agency (Bappebti) to the Financial Services Authority (OJK).
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