From August 1, 2025, Indonesia's Ministry of Finance will implement a significant increase in cryptocurrency transaction tax rates, which may seriously alter the financial environment in the country.
How Will the New Tax Structure Affect Sellers?
Under the revised tax regulations, sellers on domestic exchanges will face a tax of 0.21%, effectively doubling the previous rate of 0.1%. Sellers using foreign platforms will now incur a 1% rate, a significant increase from the prior 0.2%. This adjustment substantially raises costs for those trading in digital currencies.
Are Miners Facing Changes Too?
The updated tax regulations also impact cryptocurrency mining. The VAT applicable to mining will rise from 1.1% to 2.2%. Furthermore, the current 0.1% special income tax for miners will be phased out by 2026, moving miner incomes into the general income tax category.
International Interest Amid Higher Taxes
Despite the significant tax hikes, this is unlikely to dampen foreign interest in the burgeoning Indonesian cryptocurrency market. For instance, Hong Kong-based OSL secured a deal in June 2025, acquiring a 90% stake in a domestic crypto exchange managed by Evergreen Crest for $15 million. OSL highlighted the "young population, robust economic base, and swift cryptocurrency adoption" as major growth drivers.
Indonesia's updated taxation policy on cryptocurrency transactions presents a new dynamic, highlighting the country’s willingness to revise its fiscal strategies while still attracting international investments. These strong measures appear designed to leverage the economic benefits of digital currency trading, supporting sustainable growth within this emerging market.
