Key Takeaways
- Indonesia will double crypto transaction taxes and remove VAT for buyers starting August 1.
- Crypto assets in Indonesia are now classified as financial assets rather than commodities.
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Indonesia will double taxes on crypto transactions and eliminate value-added tax (VAT) for buyers starting August 1, as part of sweeping changes to how the country regulates digital assets, Reuters reported Wednesday.
Sellers on domestic exchanges will pay a 0.21% transaction tax, up from 0.1%, while those using overseas platforms will face a steeper increase to 1% from 0.2%, according to new regulations from the Ministry of Finance.
The government is also adjusting taxes on crypto mining, doubling VAT to 2.2% from 1.1% and eliminating the 0.1% special income tax. Starting in 2026, mining income will be taxed at standard personal or corporate rates.
Binance-backed exchange Tokocrypto welcomed the regulatory changes but requested at least a one-month grace period for firms to adapt to the new rules. The exchange said consistent enforcement is needed on foreign platforms.
The tax revisions follow Indonesia’s reclassification of crypto assets from commodities to financial assets, bringing them more in line with stock market instruments.
Indonesia has grown into one of Southeast Asia’s largest crypto markets, with over 20 million users and total transaction volume exceeding 650 trillion rupiah (approximately $40 billion) in 2024, more than triple the previous year’s figure.
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