Indonesia Announced New Crypto Tax Rates 2025: Reasons and Impact

Indonesia’s New Crypto Tax Rate Affects Domestic and Overseas Exchange

According to the recent market update, Indonesia’s Ministry of Finance has announced the new crypto rates added to regulations. The rates are higher than the earlier ones. The Finance Ministry also mentions the related reasons for raising the rates. With due respect, the changes are applicable from 1st August 2025. Given below is the applicability according to different groups.

New Crypto Tax Rates in Indonesia

• Effective from 1st August 2025, sellers of cryptocurrency assets on domestic exchanges will pay a 0.21% tax on each transaction, up from 0.1% earlier. 

• Those selling on overseas crypto platforms will now pay a 1% tax, up from 0.2%.

• Additionally, the value-added (VAT) on mining will increase from 1.1% to 2.2%. 

• Buyers will no longer need to pay VAT during purchase, which previously ranged from 0.11% to 0.22%.

• The government also removed the 0.1% special income tax on mining. 

• In 2026, income from mining will be taxed under personal or corporate income rules.

These updated Indonesian rules are part of a shift in how the country views digital assets, now treating them more like financial assets than commodities.

Source: X

Reasons for Raising Crypto Rates

The Indonesian government has experienced a huge expansion of its market. As per the data, the volume of crypto transactions grew by more than 3 times to over $39.6 billion in 2024 alone. Indonesia also had more than 20 million cryptocurrency users compared to the number of stock market investors.

As this growth is so fast, the government desires to:

• Generate more tax revenues from the activities.

• Enhance tax compliance on local and foreign exchanges.

• Enhance the regulation and accountability of this sector.

• Promote trading on controlled markets.

Cryptocurrency is also regarded as a financial investment by officials, and this is why there are changes in the structure. Previously, the Ukraine Crypto Plan proposed 23% on certain transactions.

Impact on the Indonesian market

• The increase in tax to 1% may force some traders to abandon foreign platforms. 

• The rest will move to regulated domestic exchanges to evade paying higher.

• The increase of VAT on mining might make the operations less profitable, and it might force smaller miners out of the market. 

• In the bigger picture, Southeast Asian nations can treat this in the future.

• This change can be beneficial in the long-term adoption.

Industry reactions

Indonesian Tokocrypto, a Binance-backed exchange, was pleased with the update. They consider it a good move towards acknowledgment as a financial asset. Nonetheless, they also asked to at least give a one-month grace period to allow adjustments by businesses.

They called on the government to provide financial incentives to enhance innovation within the industry. Because it has become more expensive than the capital gains charge rates on stock investments. Tokocrypto also stressed the need for stronger enforcement on cryptocurrency transactions from foreign platforms to make sure all players follow the rules fairly.

Conclusion

Indonesia's new policy reflects the government's views on cryptocurrencies. For the country’s financial system, India also tightened the crypto rates policies. While the higher might create short-term pressure, they build a more regulated and transparent ecosystem.