Indonesian Finance Ministry to Raise Taxes on Crypto Transactions and Mining from August 1

The changes will affect sellers of assets on domestic and foreign exchanges

Indonesia’s Ministry of Finance to raise taxes on crypto transactions and mining from August 1

30.07.2025 - 13:30

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3 min

What’s new? Indonesia will raise taxes on cryptocurrency transactions from August 1, including a higher rate for transactions conducted on foreign exchanges, according to a new decree from the Ministry of Finance. Cryptocurrencies have become a popular investment option in Southeast Asia’s largest economy, where they are legally traded but cannot be used as a means of payment.

Material by Reuters

What else is known? According to the Ministry of Finance, the total value of transactions with crypto assets tripled in 2024 compared to 2023 and exceeded 650 trillion rupiah ($39,67 billion). In 2024, the number of crypto exchange users in the country exceeded 20 million, which is more than the number of investors in the stock market.

According to the new resolution, for sellers of crypto assets on domestic exchanges, the tax increases from 0,1% to 0,21% of the transaction amount, and for sellers on foreign exchanges, from 0,2% to 1%.

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At the same time, buyers will no longer be subject to value-added tax (VAT). Under the previous rules, buyers paid VAT at a rate of 0,11–0,22%.

The Ministry of Finance also increased the VAT rate on crypto asset mining from 1,1% to 2,2%. A special income tax rate of 0,1% on cryptocurrency mining has been abolished, and from 2026, such income will be subject to either personal income tax or corporate tax.

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The levy is to be paid on digital assets converted to fiat

Tokocrypto, a company supported by Binance, welcomed the changes as they reflect Indonesia’s transition to classifying cryptocurrencies as financial assets and away from treating them as commodities, but suggested a grace period of at least one month to allow companies to adapt.

The company called for tax incentives to promote innovation in the industry, as the new tax rate on cryptocurrencies is higher than the capital gains tax rate on stock market investments.

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