Indonesia raises crypto tax on local and foreign crypto exchanges

Indonesia has issued higher tax rates on cryptocurrency transactions, especially on foreign crypto exchanges. The country’s finance ministry also revealed that the new regulations will take effect from August 1.

Indonesia has adopted digital assets over the years, which have become a popular investment option. In 2024, Chainalysis ranked Indonesia third in countries that have adopted cryptocurrencies. The country allows trading of virtual currencies, but limits their use as a means of payment.

Data from the country’s regulator showed that crypto transactions reached 650 trillion rupiah ($39.67 billion) in 2024, three times that of the previous year. Indonesia also recorded over 20 million users in crypto exchanges in 2024, surpassing the number of investors in the stock market.

Indonesia excludes VAT on crypto buyers

The new tax rules include a 0.21% tax on the transaction value for sellers of cryptocurrencies in local exchanges, up from the previous 0.1%. Sellers in overseas exchanges will also incur a 1% tax, up from the previous 0.2%.

Indonesia also scrapped the previous value-added tax (VAT) it had on buyers, which had been in effect since May 2022. The country now expects buyers to pay around 0.11-0.22% VAT. 

The VAT rate on mining of virtual assets in the Southeast Asian country also rose from 1.1% to 2.2%. The country also eliminated the 0.1% special income tax rate on crypto mining. Income from crypto mining activities will now be included in either personal income tax or corporate tax rates, effective in 2026.

Indonesia’s crypto exchange platform Tokocrypto commended the country’s changes in crypto tax. The firm argued that the changes mirrored Indonesia’s stance in recognizing digital assets as financial assets and not as commodities. The company also proposed a grace period of around a month to give other firms time to adapt to the changes.

“We also emphasize the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms.”

-Tokocrypto.

The crypto exchange also believes the crypto tax rate would be higher than the capital gains tax rate used in stock market investments. The firm suggested that Indonesia issue fiscal incentives to help boost innovation in the crypto sector.

Indonesia expects an increase in crypto adoption

Statista also reported that Indonesia’s cryptocurrency revenue is expected to reach $4.4 billion in 2025. The firm also forecasted an annual growth rate in crypto revenue of 3.55% between 2025 and 2026, resulting in around $4.5 billion in total revenue by 2026.

Indonesia’s cryptocurrency market is projected to reach 48.87 million users by 2026. Data showed that crypto users in the country will increase at a rate of 16.56% in 2025 and reach 16.98% by 2026.

Commissioner of Financial Sector Technology Innovation Hasan Fawzi expects that the growth of virtual currencies and crypto investors in Indonesia will continue to rise. The country recorded a surge in tradable cryptocurrencies from 851 to 1,444, with the OJK approving permits for 22 entities in the industry. The country appointed the Financial Service Authority (OJK) as the new crypto regulator as it revamped its regulatory framework for 2025.

Tokocrypto CEO Calvin Kizana also warned that Indonesia should expect to receive fierce competition from neighboring Southeast Asian countries, including Vietnam and Thailand. He called for a strong cooperation between the government, industry players, and the community to create supportive regulations to encourage crypto adoption in the nation.

Kizana also urged the country’s fiscal authorities to mirror Thailand’s move to provide tax incentives to create pro-industry policies. He championed Vietnam’s legal clarity and road map for technology adoption, saying that it could inspire efforts to create a sense of security for investors and technology developers.

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