TLDR
Crypto sellers in Indonesia to pay 0.21% on local trades and 1% on foreign trades from August 1.
VAT on crypto purchases in Indonesia will be removed starting next month.
Mining crypto in Indonesia will be taxed at 2.2% VAT from August.
A special income tax rate for mining will end in 2026, with standard tax rules applied.
Indonesia will introduce higher tax rates on cryptocurrency transactions and mining operations beginning August 1. The adjustments aim to regulate the fast-growing crypto sector more tightly and improve tax collection.
Indonesia Crypto Sellers to Face Higher Rates on Domestic and Foreign Platforms
Under the new policy from the Ministry of Finance, sellers trading digital assets through local exchanges will see their transaction tax rate rise to 0.21%, up from the current 0.1%. For sellers using foreign exchanges, the tax will increase to 1%, a fivefold jump from the previous 0.2%.
The new tax structure is designed to differentiate between domestic and foreign platforms. Domestic users will continue to operate under Indonesia’s financial asset category, while overseas transactions are subject to stricter measures.
According to the finance ministry, these steps are part of efforts to streamline compliance. Tokocrypto, a local crypto platform backed by Binance, expressed support but requested a one-month grace period to allow firms to adjust to the changes.
Indonesia Buyers No Longer Required to Pay Value Added Tax
While seller taxes have increased, buyers will benefit from the removal of value-added tax (VAT). Previously, crypto buyers had to pay VAT ranging from 0.11% to 0.22% depending on the platform and asset type.
This adjustment aims to reduce the burden on retail investors while still ensuring sellers contribute to tax revenues. The removal of VAT aligns with Indonesia’s ongoing shift in recognizing cryptocurrencies more as financial instruments rather than commodities.
The Ministry of Finance has not yet announced if the exemption on VAT for buyers will be permanent or temporary.
Mining Operations to Be Taxed More Heavily
Cryptocurrency mining activities in Indonesia will now face a 2.2% VAT rate, up from the previous 1.1%. In addition, the special income tax rate of 0.1% for crypto mining will be abolished starting in 2026.
From 2026 onward, income from mining activities will be subject to regular corporate or personal income tax rates, depending on the operator. This change will align mining operations with standard taxation rules applied to other industries.
A finance ministry official said the goal is to ensure that income from digital asset production is taxed consistently across sectors.
Market Outlook as Indonesia’s Crypto Adoption Expands
The country has seen fast growth in its crypto market. In 2024, the total value of crypto transactions tripled to more than 650 trillion rupiah (approximately $39.67 billion), according to government data. There were over 20 million users registered with local exchanges, surpassing the number of stock market investors.
International interest in Indonesia’s crypto sector has grown. In June, Hong Kong-based OSL acquired a 90% stake in Evergreen Crest, an Indonesian exchange, for $15 million.
“Indonesia possesses key attributes conducive to growth in this sector,” OSL said in a filing, citing the country’s youthful population and growing crypto adoption.
Local firms are calling for stronger enforcement of the new tax rules, especially on foreign platforms. Tokocrypto urged the government to focus on tax compliance for overseas crypto activities to level the playing field for domestic exchanges.
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