Indonesia’s Tax Increase on Crypto Transactions

Indonesia plans to raise taxes on crypto transactions by August 1 as crypto investing becomes more popular, according to a report from Reuters citing new regulations from the Ministry of Finance.

Sellers using exchanges located in Indonesia will face a tax increase from 0.1% to 0.21% on the transaction value. For those using overseas exchanges, the tax will rise from 0.2% to 1%. However, crypto buyers will benefit from the new regulations, as they will no longer be subjected to value added tax (VAT).

These measures follow a significant increase in the total transaction value of crypto on Indonesian exchanges, which more than tripled to 650 trillion rupiah ($39.5 billion) in 2024 compared to the previous year. Reports indicate that around 20 million people used these exchanges last year. Indonesia began licensing crypto exchanges after enacting legislation in 2019.

Additionally, the country has reduced the VAT rate for mining crypto from 2.2% to 1.1%.