Bitcoin News Today: Indonesia Considers Bitcoin as National Reserve Strategy to Boost Economic Growth

Indonesia is considering incorporating Bitcoin into its national reserve strategy, according to a report from Bitcoin Indonesia, which recently presented the concept to the office of Vice President Gibran Rakabuming Raka [1]. The initiative focuses on leveraging the country’s abundant hydroelectric and geothermal resources for Bitcoin mining, while also emphasizing education to drive adoption and long-term economic growth [1].

The proposed strategy highlights how Bitcoin mining could create jobs and stimulate development, mirroring the success seen in other countries [1]. Bitcoin Indonesia noted that the meeting with the Vice President’s office explored a “bold idea” of using Bitcoin mining as a national reserve strategy, suggesting the government is seriously considering the cryptocurrency’s potential to strengthen Indonesia’s economy [1].

Bitcoin Indonesia also referenced Michael Saylor’s prediction that Bitcoin could reach $13 million by 2045 in a base case scenario and $49 million in a bull case [1]. While this is a forecast, it underscores the growing interest in Bitcoin as a strategic asset among policymakers globally.

The country’s favorable economic indicators further support the exploration of this strategy. Indonesia currently has a debt-to-GDP ratio of 39%, significantly lower than many other nations, and an annual inflation rate of 0.76% as of January 2025, indicating a stable macroeconomic environment [1]. These factors make the integration of Bitcoin into the national reserve more viable compared to countries with higher debt and inflation levels.

However, Indonesia maintains strict crypto regulations, including a ban on crypto payments since 2017. While enforcement appears to be inconsistent, with some real-estate listings in Bali accepting Bitcoin, the government has reiterated that crypto payments—by both residents and tourists—will be handled “firmly” [1]. Recently, the Finance Ministry also increased taxes on crypto traders and miners, with income tax on local exchanges rising from 0.1% to 0.21%, and to 1% for foreign exchanges [1]. The value-added tax on mining activities doubled from 1.1% to 2.2%.

Despite these regulatory hurdles, the Vice President’s office reportedly acknowledged the importance of continued Bitcoin education to foster wider adoption [1]. This marks a significant step toward integrating crypto-related initiatives into national economic planning.

Indonesia, the fourth most populous country with over 280 million people and a $1.4 trillion GDP, is positioning itself to take advantage of the growing interest in Bitcoin among governments worldwide [1]. As Bitcoin continues to attract attention as a reserve asset, Indonesia’s exploration of the cryptocurrency reflects a broader trend of countries rethinking their financial strategies in the digital age.

Source: [1] Indonesia Explores Bitcoin as a National Reserve Strategy Amid Economic Growth Discussions (https://en.coinotag.com/indonesia-explores-bitcoin-as-a-national-reserve-strategy-amid-economic-growth-discussions/)