Indonesia raises crypto taxes for foreign exchanges as domestic use surges 39%

Indonesia has introduced sweeping changes to its crypto tax structure, targeting overseas exchanges and crypto miners with increased rates while easing the burden on buyers.

The new financial regulation, enforced by the Ministry of Finance, will come into effect on 1 August, as per a Reuters report.

It introduces a higher tax rate of 1% for crypto transactions carried out via foreign exchanges, compared to the previous 0.2%, and doubles the VAT for crypto mining activities.

The move reflects Indonesia’s bid to tighten regulatory oversight over the country’s fast-growing digital asset sector, while also boosting its tax base.

Crypto transactions on foreign platforms are now taxed at 1%

The new rules mean that crypto sellers using overseas platforms—such as Binance, Bitget, and Bybit—are now required to pay a 1% tax on every transaction, up from 0.2%.

Domestic exchanges, including Indodax, Pintu, and Tokocrypto, are subject to a lower tax rate of 0.21%, increased from the earlier 0.11%.

This 0.8% hike for foreign players could pressure global platforms to reassess their Indonesian operations.

Domestic platforms, despite facing a small tax increase, may benefit from the competitive edge provided by the disparity in tax treatment.

The regulation could prompt more users to shift towards local exchanges, particularly as transaction costs rise for international alternatives.

Crypto miners face VAT rate hike from 1.1% to 2.2%

Alongside the transaction tax changes, the government has doubled the VAT on crypto mining—from 1.1% to 2.2%—further tightening the fiscal environment for digital asset operations in the country.

While the measure may curb some mining activity, the broader crypto market in Indonesia continues to show resilience, as evidenced by strong growth data reported by regulators.

In contrast, buyers of crypto assets have been granted a break.

The new regulation removes value-added tax for customers, eliminating the previous VAT rate of 0.11% to 0.22%.

This shift aims to keep the retail investor base engaged even as taxes on platforms and miners increase.

Domestic crypto activity reaches $39.67 billion in 2024

According to the Financial Services Authority (OJK), cryptocurrency transaction volumes in Indonesia tripled in 2024 compared to the year before, reaching $39.67 billion.

This growing activity signals an increasingly robust digital asset market despite regulatory tightening.

In May 2025 alone, crypto transactions reached Rp49.57 trillion ($3.02 billion), marking a 39.21% month-on-month surge.

The number of crypto traders in the country has also risen to 14.78 million by May 2025—an increase of 4.38% over April figures—surpassing the total number of investors in the Indonesian stock market.

The increase in crypto usage has driven the government’s efforts to align taxation policy with digital market trends.

The Indonesian government’s latest measures reflect a broader strategy to formalise and monitor the digital asset sector.

While the tax burdens for platforms and miners have increased, the waiver on VAT for buyers may soften the impact for end-users and maintain momentum in the country’s crypto economy.

The post Indonesia raises crypto taxes for foreign exchanges as domestic use surges 39% appeared first on Invezz