Indonesia will increase taxes on cryptocurrency transactions starting August 1, a move aimed at regulating the nation’s rapidly growing crypto market, according to a new finance ministry regulation. The measure imposes higher rates on trades conducted through overseas exchanges, Reuters reported.
The Southeast Asian nation has seen a surge in crypto activity, with the total transaction value of crypto assets tripling in 2024 to more than 650 trillion rupiah ($39.67 billion). The number of crypto users exceeded 20 million last year, surpassing the total number of stock market investors in Indonesia.
Under the new rules, sellers on domestic exchanges are now required to pay a 0.21% tax on the transaction value, up from the previous 0.1%. Sellers using foreign exchanges face a 1% rate, a significant increase from the previous 0.2%. Buyers will no longer be liable for value added tax (VAT), which ranged from 0.11% to 0.22% under the former regulations.
In addition, Indonesia raised the VAT on crypto mining to 2.2%, up from 1.1%, while a 0.1% special income tax on crypto mining was removed, making such earnings subject to standard personal or corporate tax rates starting in 2026.
Binance-backed Tokocrypto welcomed the regulatory clarity, noting that the changes reflect Indonesia’s shift in classifying cryptocurrencies as financial assets rather than commodities. The company also requested a minimum one-month grace period to allow businesses to adjust and urged fiscal incentives to promote innovation in the sector.
“We also emphasize the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms”
Tokocrypto said in a statement, highlighting ongoing concerns about cross-border crypto activity.
As Indonesia continues to formalize its approach to digital assets, these measures underscore the government’s intent to balance market growth with taxation and regulatory oversight.