Indonesia is tightening crypto taxes. Starting August 1, new rules will raise taxes on crypto trades, especially on those using foreign platforms. The move highlights the government’s intent to capture a larger share of revenue from a booming sector that now boasts over 20 million users, outpacing the country’s traditional stock market investor base.
New Rates Target Offshore Activity
Sellers trading on domestic exchanges will now pay a 0.21% tax on the transaction value, up from 0.1%. But the biggest change hits overseas players; those trading through foreign exchanges will see their tax rate jump from 0.2% to a steep 1%.
In a bid to simplify domestic participation, the government scrapped the value-added tax (VAT) for buyers. Previously, buyers paid between 0.11% and 0.22% VAT depending on the nature of the asset.
Meanwhile, crypto mining has also been pulled into the overhaul. The VAT on mining activities has doubled from 1.1% to 2.2%. Plus, a 0.1% special income tax on mining has been abolished. From 2026, miners will instead be taxed under standard personal or corporate income tax brackets.
Also Read : Global Crypto Adoption Report 2025
Industry Reaction: Mixed but Hopeful
Tokocrypto, a Binance-backed exchange operating in Indonesia, cautiously welcomed the new policy. The company said the regulatory shift reflects a broader reclassification of crypto from commodity status to a financial asset class. However, it urged the government to provide a transition period of at least one month to allow businesses to adapt.
In a statement, Tokocrypto also highlighted the need for better tax enforcement on foreign exchanges and proposed fiscal incentives to balance out what it described as a relatively high tax burden, especially when compared to the capital gains tax on equities.
Indonesia’s crypto market has seen explosive growth, with total transaction value tripling in 2024 to over $39 billion. The latest tax measures mark a significant step in the country’s effort to formalize and regulate its rapidly expanding digital asset landscape, while also aiming to level the playing field between local and global platforms.
