Indonesia is actively exploring the possibility of adopting Bitcoin as a strategic reserve asset. This move could significantly alter the country's approach to digital currencies.
Bitcoin as a Strategic Reserve
In a recent meeting, representatives from Bitcoin Indonesia discussed with officials from the Vice President's office a proposal on how Bitcoin could contribute to long-term economic growth. The group emphasized the idea of leveraging the country's rich hydroelectric and geothermal resources for Bitcoin mining, which is expected to lead to job creation and technological advancement.
Education and Public Awareness about Bitcoin
During the presentation, Bitcoin Indonesia also discussed the broader implications of embracing Bitcoin, including education and public awareness initiatives. A notable highlight was the emphasis on the need to ensure widespread understanding and adoption of Bitcoin, a point reportedly supported by Vice President Gibran Rakabuming Raka’s office.
Crypto Taxation in Indonesia
In contrast to the growing interest in Bitcoin, Indonesia’s Finance Ministry recently imposed higher taxes on cryptocurrency activities. Income tax on crypto sales increased from 0.1% to 0.21% for local exchanges, and from 0.2% to 1% for foreign platforms. Additionally, the value-added tax on mining sharply rose from 1.1% to 2.2%. While the country has banned crypto payments since 2017, enforcement remains loose, with some businesses in tourist areas accepting Bitcoin.
Indonesia's proposal to adopt Bitcoin as a strategic reserve asset reflects an increasing interest in innovation within the national economy, despite external tax limitations.
