New Crypto Tax Rates in Indonesia Effective from August 1

Indonesia has been one of the quickest countries to adopt cryptocurrency. It has been able to lay down respective rules and regulations rapidly. Although the country allows trading of virtual currencies, it restricts their use as a means of payment. Indonesian crypto adoption is among the highest in the world, with over 20 million active users and $39–$40 billion in transactions in 2024. As a result, tax revenues are expected to rise as the government seeks to capture a share of this booming market. The newer regulations are implemented by the Finance Minister. These changes will take effect from August 1, and multiple introductions will take place.

Higher Taxes on Crypto Transactions

Sellers on Indonesian platforms will pay a 0.21% transaction tax, up from 0.1%. The impact on casual users and long-term holders would remain medium. However, due to the higher seller taxes, it can potentially affect trading volumes.

On the other hand, sellers using overseas platforms to exchange crypto will now face a 1% tax, sharply up from 0.2%. The higher tax on foreign platforms is designed to discourage Indonesians from conducting offshore transactions. Many offshore individual users seeking lower fees have crypto flows with Indonesia. Following the change, a decrease in cross-border crypto flows is expected. Alongside, there can be a potential increase in the use of domestic exchanges.

Changes in Buyer & Mining VAT

The VAT for currency mining has doubled to 2.2%, up from 1.1%. Since mining takes a lot of cost & capital, the counter effect of VAT can be negative. This change may significantly shrink mining activity for small and medium-sized miners. And it will be possible for only large-scale operations to be profitable after taxation.

However, this may be offset by the removal of value-added tax (VAT) for crypto buyers on both domestic and foreign exchanges. Previously, VAT ranged between 0.11% and 0.22%. This move is likely to encourage new retail adoption.

A 0.1% special income tax on mining will be eliminated from 2026, as mining income will instead be taxed at standard personal and corporate rates.  This can put operators under a two-fold pressure of increased upfront cost due to higher VAT, as well as a higher marginal tax rate on earnings. 

Transition in Supervision of Crypto

Previously, crypto activity was monitored by the nation’s Commodity Regulator. Under the new policy, this responsibility will shift to Otoritas Jasa Keuangan (OJK or Financial Services Authority) and Bank Indonesia.

These changes aim to address regulatory loopholes, standardize taxation across platforms. Formal system integration is expected to improve transparency and increase retail buyer confidence. The removal of VAT will create financial incentives for buyers and encourage retail participation. It may also lead to greater individual involvement, due to increased taxation on sellers and miners.

Many of the firms in Indonesia have called for at least a one-month grace period to adapt and have recommended tax incentives. Likewise, Tokocrypto (a Binance partner) and other local businesses support the new framework.

Impact on the Indonesian Market

Due to the sharp hike in taxes on foreign exchanges, trading activity is likely to be redirected toward domestic platforms. Alongside the removal of preferential mining tax treatment, this could lead to market consolidation among large-scale miners. Despite the long-term benefits, if a grace period is not provided, smaller players may face temporary disruptions or risk non-compliance.