Indonesia is changing the way it taxes cryptocurrency, and starting August 1, the new rules will bring higher tax rates, especially for people trading on foreign platforms.
According to a new regulation from the finance ministry, local crypto transactions will now be taxed at 0.21%, up from the previous 0.1%. But if the trade happens through an overseas exchange, the tax jumps to 1%, up from 0.2%. This move is part of the government’s effort to tighten control over the fast-growing crypto market.
On the other hand, the buyers won’t have to pay value added tax (VAT) anymore. Before, buyers had to pay between 0.11% and 0.22% in VAT.
Mining crypto will also get more expensive. The VAT on mining will double from 1.1% to 2.2%. Plus, a special low tax rate on crypto mining income (0.1%) is being scrapped. From 2026, miners will have to pay standard income or corporate tax rates instead.
Crypto is booming in Indonesia. In 2024 alone, the total value of crypto transactions tripled to over 650 trillion rupiah ($39.7 billion). More than 20 million people in Indonesia now use crypto platforms, more than those investing in the stock market.
Tokocrypto, a major crypto exchange backed by Binance, said it supports the changes, especially the government’s recognition of crypto as a financial asset instead of a commodity. But the company asked for at least one month of preparation time for companies to adjust to the new system.
Tokocrypto also stressed the need for stronger oversight of crypto trading on foreign platforms. At the same time, it called for tax incentives to support innovation, pointing out that crypto tax rates are still higher than taxes on profits from stock trading.
Indonesia Emerges as a Global Crypto Powerhouse with Over 28 Million Users
Indonesia has rapidly climbed the global crypto adoption ranks, becoming one of the world’s most active markets for digital assets. In 2024, the country ranked third globally in the Chainalysis Global Crypto Adoption Index, just behind India and Nigeria. This reflects the deep integration of cryptocurrencies into everyday financial activity, particularly among young and underbanked users.
According to official reports, Indonesia now has between 20 and 28.5 million registered crypto users, outpacing the number of domestic stock market investors. Major platforms such as Binance-backed Tokocrypto highlight the country’s growing shift from viewing crypto as a commodity to recognizing it as a financial asset.
