Bitcoin News Today: Indonesia Considers $18.3 Billion Bitcoin Reserve via BPI Danantara Fund

Indonesia is moving toward considering Bitcoin as part of its national reserves, with a proposal gaining traction in government circles. The initiative, led by Bitcoin Indonesia, a prominent crypto advocacy group, envisions allocating up to $18.3 billion from the BPI Danantara fund—established in February 2025—to acquire up to 200,000 Bitcoin [1]. The proposal was recently presented to the Office of the Vice President, signaling that the idea is being taken seriously at the highest levels of government [2].

The plan is not just about purchasing Bitcoin, but also about mining it domestically using Indonesia’s abundant renewable energy resources, particularly geothermal and hydroelectric power. Proponents argue that this approach can create jobs, boost the energy sector, and enhance Indonesia’s position in the global crypto economy [1]. A representative from Bitcoin Indonesia emphasized that the country has a "massive opportunity to mine Bitcoin sustainably and strategically" [3].

The proposal has received a positive but cautious response from the government. According to Cointelegraph, the Vice President’s office acknowledged the initiative and expressed openness, particularly regarding public education about Bitcoin. A VP representative noted, “Indonesia must continue to educate about Bitcoin in the future” [4]. While no concrete policy has been enacted, the ongoing discussions reflect a strategic vision for long-term economic diversification and digital innovation [5].

Indonesia’s current economic conditions support such experimentation. The country’s debt-to-GDP ratio is 39%, and inflation remains low at 0.76% as of January 2025, providing economic flexibility [6]. Advocates of the Bitcoin Reserve proposal suggest that if Bitcoin reaches the long-term valuations projected by figures like Michael Saylor—up to $13 million per coin—the reserve could generate significant surplus and reduce public debt [7].

However, regulatory challenges remain. Although crypto trading is legal in Indonesia, Bitcoin cannot be used for payments, and the regulatory environment is strict and unpredictable. Recent tax reforms have increased income tax on crypto trading to 0.21%, mining VAT to 2.2%, and foreign exchange trades to 1%. These changes add complexity to any government-led Bitcoin initiative and underscore the need for legal clarity and potential new legislation before the plan can be implemented [8].

Market analysts have noted that sovereign adoption of Bitcoin by countries like Indonesia could serve as a bullish long-term catalyst for the asset. As of August 6, 2025, Bitcoin was trading at $113,927, a 0.68% decline over the previous 24 hours [9].

Despite uncertainties, the Bitcoin Reserve proposal represents a bold economic vision. If realized, it could mark a historic shift in how Asia approaches digital assets and challenge traditional reserve management models globally [10].

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[1] https://coinmarketcap.com/community/articles/68935677f7fda44c0c666148/