Indonesia will increase taxes on cryptocurrency trades under a new finance ministry rule. The change applies to both local and overseas exchanges and takes effect on August 1, 2025.

The move is to boost state revenue and tighten management of digital assets in the country’s growing crypto market.

Higher Sales Tax for Domestic Sellers

It will cost more than twice as much under the new regulation, where Indonesian sellers will be charged 0.21% per transaction. This is an increase from the earlier rate of 0.1%, Reuters reported. 

The increased levy will apply to every trade in digital coins and tokens, including Bitcoin, Ether and stablecoins like Tether.

Foreign exchange traders will witness even bigger hikes. The sales tax on trades executed through foreign bourses rises from 0.2% to 1%. By increasing the rate five times, the government expects to divert more business into regulated local platforms.

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Purchasers of cryptocurrency assets will no longer have to pay value-added tax. Previously, under the old regulation, orders of purchase imposed VAT charges ranging from 0.11% to 0.22%. The elimination of this charge simplifies market entry for investors.

VAT for Mining

The law also doubles the VAT on the mining of cryptocurrencies. Miners now pay 2.2% compared to the previous 1.1%. 

Additionally, a special 0.1% tax on income from mining will fade away in 2026. Mining gains by then will be subject to personal or corporate income tax regimes.

The regulation also doubles the VAT on crypto mining. Miners must now pay 2.2% instead of 1.1%. In addition, a special 0.1% income tax on mining will disappear in 2026. At that point, mining profits will be taxed under personal or corporate income tax rules.

The changes reflect Indonesia’s decision to treat cryptocurrencies as financial assets rather than commodities. Regulators believe this shift will bring the sector under tighter financial rules. It also aligns Indonesia with global standards on digital finance.

Market Growth and Usage

Crypto trading has soared in Indonesia. Last year, the total transaction value tripled to more than 650 trillion rupiah, or about $40 billion. More than 20 million Indonesians held exchange accounts in 2024, outnumbering stock market investors.

Experts say collecting levies from foreign exchanges will be tricky. Many operate without local approval. 

Regulators will have to beef up digital monitoring and cooperate with tax authorities abroad. At home, banks and payment processors must flag crypto transactions for review.

Whether the higher rates will curb speculative trades or simply drive them underground remains to be seen.

Also Read: Hong Kong’s OSL Group Acquires 90% Of Indonesian Crypto Exchange For $15M To Drive Expansion