Indonesia crypto tax reform

Key Points:* Indonesia updates crypto taxes, increases overseas and domestic transaction rates.

• Crypto seen as financial asset enhancing regulatory clarity.
• Reforms aim to increase revenue but require adjustment period. The Indonesian Ministry of Finance will increase tax rates on cryptocurrency transactions beginning August 1, 2025, impacting domestic and overseas exchanges.

This move signifies a regulatory shift classifying crypto as a financial asset, affecting market dynamics, with industry stakeholders seeking adaptation periods and improved oversight on international transactions.

Indonesia Increases Crypto Taxes: New Rates and Industry Impact

Indonesia will raise tax rates on domestic and overseas cryptocurrency transactions beginning August 1. Sellers on local exchanges will see rates increase to 0.21%, while those on overseas platforms will face a 1% tax.

VAT will no longer apply to crypto buyers, simplifying compliance. However, mining services will see their VAT doubled to 2.2%, affecting the cost structure for these operations.

Industry groups like the Indonesia Crypto Network call for gradual adaptation and oversight of overseas platforms. Affected assets include BTC, ETH, USDT, and DOGE, with major local exchanges focusing on regulatory compliance. The Indonesia Crypto Network (ICN) stated, “By removing VAT from crypto transactions, Indonesia would simplify tax compliance and reduce transaction costs. This step would make the tax structure more consistent with the treatment of financial assets in other markets and help address current complexity in tax reporting.”

Crypto Reclassification: Aligning with Global Financial Markets

Did you know? In Indonesia’s previous regulatory phase starting May 2022, crypto was categorized as a commodity. This reclassification aligns with global leaders like Singapore and Hong Kong in treating crypto as a financial asset.

Bitcoin (BTC), as per CoinMarketCap, currently trades at $117,999.31. With a market cap of approximately $2.35 trillion, BTC maintains a dominance of 60.68%. Recent trends show a 24-hour price decrease of 0.66%, though it has gained 24.01% over the past 90 days.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:03 UTC on July 30, 2025. Source: CoinMarketCap Insights from the Coincu research team reveal potential regulatory clarity offers economic stability. The adjustments may boost domestic platforms while moderating overseas activities, signaling enduring shifts in Indonesia’s cryptocurrency landscape.

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