Indonesia plans to increase taxes on cryptocurrency transactions starting August 1, 2025, as part of new regulatory updates issued by the Ministry of Finance.
Changes in Tax Regulation
Under the new rules, the tax for sellers of crypto assets on domestic exchanges will rise from 0.1% to 0.21% of the transaction value. Taxes on trades executed on overseas platforms will increase from 0.2% to 1%. The regulation also removes the value-added tax (VAT) for buyers, who previously paid between 0.11% and 0.22%. The VAT on crypto mining will double from 1.1% to 2.2%.
Reactions from Crypto Exchanges and the Industry
Binance-backed Tokocrypto welcomed the regulatory change, noting it reflects the government's evolving stance on digital assets as financial instruments. However, the exchange called for a one-month grace period to help businesses adapt to the new rules. 'We also emphasize the importance of strengthening oversight and tax enforcement on crypto transactions conducted through foreign platforms,' said Tokocrypto.
Broad Measures for Market Regulation
These changes are part of Indonesia's broader efforts to regulate its growing digital asset market while enhancing tax revenues from one of Southeast Asia's fastest-growing crypto economies. In a related development, Indonesia's Ministry of Communication and Digital has temporarily suspended the registration of World Network, formerly Worldcoin, amid a surge in public complaints over alleged suspicious activities tied to the platforms.
The increase in taxes on cryptocurrency transactions in Indonesia underscores the government's efforts to regulate the rapidly growing digital asset market and boost tax revenues, which may impact the cryptocurrency ecosystem in the country.
