Indonesia is revising its cryptocurrency regulations, and as part of this process, taxes on crypto transactions and mining activities will increase at the end of this week. Transactions on international exchanges will face a higher tax rate.
Crypto Tax Hike Coming to Indonesia
The Indonesian Ministry of Finance revealed on Wednesday that new tax rules for cryptocurrency transactions and mining will take effect on August 1, 2025. Finance Minister Sri Mulyani Indrawati stated that Minister of Finance Regulations (PMK) 50/2025 and 53/3035 are essential to establish clear legal guidelines and harmonize digital asset trading with the sector’s advancement.
According to a Reuters report, the updated regulations will impose a 0.21% tax on the transaction value for sellers of digital assets on local exchanges, up from the previous 0.1%. Sales of digital assets executed on international exchanges will be taxed at 1%, a rise from the prior 0.2%, beginning this Friday.
However, the new regulations eliminate the value-added tax (VAT) on cryptocurrency transactions, previously ranging from 0.11% to 0.22%. CNBC Indonesia reported that PMK 53/2025 revoked articles 343 and 354 of PMK 11/2025, thus removing the VAT.
PMK 50/2025 specifies that digital assets “equivalent to securities” are exempt from VAT. However, it clarifies that “taxable services, such as the provision of electronic facilities used to facilitate cryptocurrency trading transactions by Electronic Trading System Operators (PMSE) or taxable services such as cryptocurrency transaction verification by cryptocurrency miners remain subject to VAT.”
Concerning cryptocurrency miners, Indonesia has increased the VAT rate from 1.1% to 2.2%. Additionally, the 0.1% special income tax rate has been removed, and such income will now be subject to either personal income tax or corporate tax rates, starting in 2026.
The regulations stipulate that PMSEs and miners who fail to comply with these provisions will face penalties as outlined in the General Provisions and Tax Procedures Law.
Regulatory Changes in Indonesia
Tokocrypto issued a statement advocating for fiscal incentives to promote innovation in the crypto space. According to Reuters, they contend that the revised crypto tax rate is still higher than the capital gains tax rate applicable to stock market investments.
The company reportedly emphasized “the necessity of enhancing oversight and tax enforcement for crypto asset transactions conducted through international platforms.”
Regulatory data indicates that Indonesia had over 20 million crypto exchange users in 2024, exceeding the number of stock market investors. The total transaction value of digital assets has tripled, reaching $39.67 billion. Indonesia maintains one of the highest crypto adoption rates globally, ranking 3rd in trader numbers in 2024, surpassing the US and Russia.
Indonesian financial regulators have faced criticism for earlier actions, including prohibiting the use of digital assets for direct payments for goods and services. The country’s dual taxation approach on digital assets is viewed by some industry participants as potentially hindering market growth in recent years.
The government shifted from a previously cautious and heavily criticized approach to a more accommodating, yet still firm, regulatory stance last year, which is expected to create a more transparent and comprehensive regulatory framework aligning with international standards.
In January, the industry’s supervision began to transition from the Commodity Futures Trading Agency (Bappebti), which had overseen digital assets since 2018, to the Financial Services Authority (OJK).
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