Indonesia Reclassifies Crypto as a “Financial Asset,” Overhauls Tax System

• Indonesia will raise taxes on crypto transactions starting August with a 0.21% tax on domestic exchanges and 1% on overseas platforms.
• The government is reclassifying cryptocurrencies from commodities to financial assets.
• Crypto mining VAT will rise to 2.2%, and income from mining will be subject to personal or corporate tax rates starting in 2026.

Indonesia has announced new tax regulations for Bitcoin and crypto transactions, effective from August 1, 2025. The adjustments aim to increase revenue and align with the growing role of cryptocurrencies as financial instruments, and will see tax rates rise for both local and international crypto exchanges.

Higher Tax Rates for Local and Overseas Crypto Exchanges

For sellers using domestic exchanges, the tax rate will rise from 0.1% to 0.21% of the transaction value. For transactions on overseas exchanges, which have historically been a grey area, the tax rate will jump from 0.2% to 1%.

Interestingly, the Indonesian government has removed the Value Added Tax (VAT) on crypto purchases, which had previously ranged between 0.11% to 0.22% depending on whether the transaction was conducted through a domestic or foreign exchange.

Related: Future of Crypto in Indonesia: Growth, Challenges & Outlook

Bitcoin Mining and Income Tax Adjustments

In addition to the changes for traders, Bitcoin and crypto mining will also face increased tax burdens. The VAT on mining has been raised to 2.2%, up from 1.1%. 

Moreover, the 0.1% special income tax rate on crypto mining will be phased out by 2026. From then on, mining income will be taxed under personal or corporate tax rates, effectively increasing the tax rate for mining operations.

Crypto is now officially a “financial asset”

One of the most significant elements of the new policy is the formal reclassification of cryptocurrencies. Once considered a “commodity,” crypto will now be legally treated as a “financial asset.”

This move mirrors a global trend where many countries are recognizing the growing role of digital currencies in financial markets.

As part of this transition, the regulation of crypto assets will shift from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) and Bank Indonesia. 

Related: Indonesia’s Bappebti Gives Crypto Exchanges More Time for PFAK License

Industry Response

Industry players have responded to the tax overhaul with cautious optimism. Tokocrypto, a crypto exchange backed by Binance, welcomed the changes. It noted that they reflect the country’s evolving understanding of cryptocurrencies as a financial asset. 

However, the company also raised concerns about the impact on businesses. It is urging the government to introduce a grace period of at least one month to allow crypto companies time to adjust to the new regulations.

In addition, Tokocrypto has called for fiscal incentives to foster innovation in the crypto space. The company pointed out that the new tax rate for crypto transactions would still be higher than the capital gains tax applied to stock market investments, which could discourage investment in the sector.

Boosting Revenue in the Long Term

Notably, the Indonesian government is positioning these tax changes as a way to boost revenue in the medium to long term. According to the Director General of Taxes, Bimo Wijayanto, the new regulations are part of a broader strategy to expand the tax base for digital transactions and bring the crypto market in line with the country’s overall fiscal goals for 2026.

Crypto transactions in Indonesia have seen significant growth, with the total market value tripling in 2024 to more than 650 trillion rupiah (around $39.67 billion). This makes it an increasingly important sector for tax revenue, especially as more Indonesians flock to crypto exchanges. Notably, over 20 million Indonesian crypto users were reported in 2024.