Indonesia's Ministry of Finance has unveiled sweeping changes to its cryptocurrency taxation framework, effective August 1, 2025. The reforms significantly alter transaction taxes, mining levies, and regulatory oversight in Southeast Asia's largest crypto market.
Sellers on domestic exchanges face increased transaction taxes from 0.10% to 0.21%, while those using foreign platforms confront a dramatic jump from 0.20% to 1.00% – a fivefold increase designed to discourage offshore trading and boost local exchange usage. Conversely, buyers receive substantial relief with the elimination of value-added tax (VAT), previously ranging from 0.11% to 0.22%.
Mining operations face doubled VAT from 1.1% to 2.2%, while the special 0.1% income tax on mined assets will be phased out by 2026. Post-2026, mining income will be taxed under standard corporate or personal income tax structures.
This overhaul accompanies a fundamental reclassification of cryptocurrencies from commodities to financial instruments, transferring regulatory authority from commodity futures regulator Bappebti to the Financial Services Authority (OJK). The shift aims to standardize oversight in a market that has exploded to over 20 million users – exceeding Indonesia's stock market participation – with 2024 transaction volumes reaching 650 trillion rupiah (≈$40 billion).
Industry reactions are mixed. Tokocrypto, a major Binance-backed exchange, endorsed the regulatory evolution as legitimizing crypto's financial role but urged a grace period for implementation and requested fiscal incentives for local innovation. The exchange also advocated stricter enforcement against unapproved foreign platforms operating in Indonesia.