Indonesia’s New Crypto Tax: Higher Rates for Traders and Miners Starting August 1

Indonesia is poised to implement a significantly revised cryptocurrency taxation framework, effective August 1, 2025, marking a pivotal moment in the nation’s evolving approach to digital asset regulation. The updated regulations, detailed by the Ministry of Finance and reported by Reuters, aim to enhance government revenue collection while simultaneously signaling a more mature recognition of cryptocurrencies within the broader financial system.

• Indonesia’s new cryptocurrency tax framework takes effect August 1, 2025.
• Transaction tax for domestic crypto exchanges increases to 0.21% from 0.1%.
• Transaction tax for foreign crypto exchanges rises fivefold to 1% from 0.2%.
• Value-added tax (VAT) on crypto asset purchases is eliminated.
• VAT for cryptocurrency miners increases to 2.2% from 1.1%.
• A specialized 0.1% income tax on mining is abolished; mining income will be subject to standard corporate and individual income tax rates from 2026.

Revised Taxation for Digital Asset Transactions

The new structure introduces elevated tax rates for both crypto traders and miners, alongside distinct adjustments for transactions conducted on domestic versus international platforms. For traders utilizing local Indonesian exchanges, the transaction tax will increase to 0.21%, an uptick from the previous 0.1%. A more substantial increase is applied to trades on foreign exchanges, where the rate will rise to 1%, representing a fivefold increase from the prior 0.2%.

Shifting Landscape for Crypto Mining and VAT

Concurrently, the value-added tax (VAT) on the purchase of crypto assets, which previously ranged from 0.11% to 0.22%, has been entirely eliminated. However, cryptocurrency miners will see their VAT obligations increase to 2.2% from the former 1.1%. Furthermore, a specialized income tax of 0.1% on crypto mining activities will be abolished. Instead, mining income will be subject to standard corporate and individual income tax rates starting from 2026, aligning digital asset mining with conventional business taxation.

Industry Perspectives and Future Outlook

Industry stakeholders, including Tokocrypto, a cryptocurrency exchange supported by Binance, have offered a nuanced perspective on these developments. While acknowledging the regulatory update as a positive step toward classifying cryptocurrencies as financial assets rather than commodities, Tokocrypto has also advocated for a month-long transition period to facilitate market adaptation. The exchange further recommended enhanced oversight for foreign trading platforms and the introduction of tax incentives designed to foster innovation within the domestic crypto industry. Notably, Tokocrypto highlighted that the new rates for digital assets still remain higher than those applied to traditional market investments, suggesting a potential area for further policy refinement.