Indonesia Imposes Up to 1% Tax on Crypto: 14.78M Traders to Be Affected
Starting August 1, 2025, Indonesia will impose a new tax regime for cryptocurrency transactions, with higher rates for both domestic...
Quick overview
- Starting August 1, 2025, Indonesia will implement a new tax regime for cryptocurrency transactions, increasing rates for both domestic and international exchanges.
- Domestic crypto exchanges will face a tax of 0.21% per transaction, while international platforms will be taxed at 1%, significantly higher.
- Buyers of crypto assets will no longer pay VAT, but miners will see their VAT rate double from 1.1% to 2.2%, potentially affecting the mining sector.
- The regulation aims to encourage the use of local exchanges amid a surge in cryptocurrency adoption, with registered traders in Indonesia reaching 14.78 million by May 2025.
Starting August 1, 2025, Indonesia will impose a new tax regime for cryptocurrency transactions, with higher rates for both domestic and international crypto exchanges. The latest regulation from the Ministry of Finance aims to control a market that now has more users than the national stock market.
Under the new law, domestic crypto exchanges will be taxed 0.21% per transaction, up from 0.11%. For international platforms like Binance, Bybit, and Bitget, the rate jumps to 1%, five times higher. This is to encourage traders to use locally registered platforms like Indodax, Tokocrypto, and Pintu.
Note: buyers of crypto assets will no longer pay Value Added Tax (VAT) which used to be between 0.11% to 0.22%. But crypto miners will see their VAT rate double from 1.1% to 2.2% which might impact Indonesia’s mining sector.
Why Indonesia Is Targeting Crypto
The move to raise taxes is backed by the surge of cryptocurrency adoption in Indonesia. According to OJK, total transaction volume in 2024 reached $39.67 billion, triple the previous year.
As of May 2025, the number of registered crypto traders in the country reached 14.78 million, 4.38% monthly increase. In the same month, crypto transactions reached Rp49.57 trillion ($3.02 billion), 39.21% increase from April.
Reasons behind this trend:
- Growing interest in digital currencies amid global market fluctuations
- More domestic platforms available for easier access
- Stronger consumer confidence supported by regulatory oversight
Hasan Fawzi, CEO of OJK’s Digital Assets Division said, “The increasing trend of consumers and crypto asset transactions shows that consumer confidence and the national crypto asset market is well maintained.”
Impact on Crypto Exchanges and Traders
For foreign exchanges, the new tax structure might lead to strategic withdrawal or operational shift as they reassess their profitability under the higher tax. Domestic exchanges might benefit from higher user retention.
Key takeaways for traders and exchanges:
- 0.21% tax for domestic crypto transactions
- 1% tax for overseas platform trades
- 0% VAT for crypto buyers, but* 2.2% VAT for miners
This is Indonesia’s way of balancing innovation with tax and compliance, being a regulator and a player in the global crypto market.
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