The Indonesian Ministry of Finance has announced an increase in taxes on cryptocurrency transactions effective August 1, 2025. The changes will affect both domestic and international exchanges.
Details of Tax Regulation
According to recent reports, the tax rate for sellers on domestic cryptocurrency exchanges will increase to 0.21%, effectively doubling from the previous 0.1%. For sellers on foreign exchanges, the rate will escalate from 0.2% to 1%, marking a fivefold increase. Buyers will now be fully exempt from VAT, which previously ranged from 0.11% to 0.22%. These regulations are to take effect on August 1, 2025.
Impact of New Rates on Investors and the Market
Despite the sharp tax hike, it is expected that international interest in the Indonesian market will remain strong. In June 2025, Hong Kong-based OSL entered into an agreement to acquire a 90% stake in a local cryptocurrency exchange operated by Evergreen Crest for $15 million. OSL highlighted Indonesia's "young population, solid economic foundation, and rapidly increasing cryptocurrency adoption" as conducive to growth.
Changes for Cryptocurrency Mining
Regarding cryptocurrency mining, VAT will be raised from 1.1% to 2.2%. Additionally, the 0.1% special income tax is set to be abolished in 2026, transitioning miner incomes under the general income tax level.
The increase in cryptocurrency taxes in Indonesia effective August 1, 2025, may significantly influence the financial landscape in the country. Whether international investor interest and local industry growth will continue remains an important question.
