Bitcoin News Today: Indonesia Considers Bitcoin for National Reserves Amid Economic Strategy Review

Indonesia's government is engaging in exploratory discussions with local cryptocurrency advocacy group Bitcoin Indonesia to assess the potential of incorporating Bitcoin into its national reserves strategy. These talks, initiated through meetings with the office of Vice President Gibran Rakabuming Raka, focus on the long-term economic benefits and strategic value of Bitcoin as a digital asset [1]. The initiative suggests a gradual shift in the country's stance toward digital currencies, though no formal policies or funding have been announced.

The discussions highlight Indonesia’s abundant renewable energy resources, particularly hydroelectric and geothermal power, which could support large-scale Bitcoin mining operations. This approach, if realized, could create jobs, reduce reliance on traditional energy sources, and position Indonesia as a regional leader in cryptocurrency adoption [1]. Bitcoin Indonesia emphasized that the country’s stable macroeconomic indicators—such as a 39% debt-to-GDP ratio and 0.76% inflation rate as of January 2025—make it well-suited to explore innovative reserve diversification strategies [1].

While the focus remains on Bitcoin, the government has not expressed interest in other cryptocurrencies such as Ethereum or altcoins [1]. Regulatory bodies, including the Financial Services Authority (OJK), have shown cautious interest, underscoring the need for robust governance frameworks before any large-scale adoption occurs. The sovereign wealth fund, known as Danantara, is also being considered as a potential vehicle for Bitcoin accumulation, though no on-chain activity has yet been recorded to confirm this [1].

Bitcoin Indonesia cited projections from Michael Saylor, who estimates that Bitcoin could reach $13 million in a base-case scenario and up to $49 million in a bull case by 2045 [1]. These forecasts, while speculative, reflect the growing appeal of Bitcoin as a strategic reserve asset. The Vice President’s office has acknowledged the idea as “bold,” signaling openness to further exploration but also emphasizing the need for continued education on the topic [1].

Despite these developments, Indonesia continues to enforce strict regulations on cryptocurrency usage. A ban on crypto payments remains in place from 2017, and recent tax adjustments have increased the burden on local traders and miners. Income tax on local exchanges was raised from 0.1% to 0.21%, while those using foreign exchanges now pay 1% [1]. The value-added tax on mining activities was also doubled from 1.1% to 2.2%, indicating a regulatory environment that remains cautious but evolving.

The initiative could set a precedent for Southeast Asia, potentially influencing regional policies on digital assets and prompting a re-evaluation of how national economies manage their reserves in the digital age. With a population exceeding 280 million and a GDP of $1.4 trillion, Indonesia’s exploration of Bitcoin reflects broader global trends in rethinking financial strategies through digital innovation [1].

Source:

[1] Indonesia Explores Bitcoin as a National Reserve Strategy Amid Economic Growth Discussions (https://www.ainvest.com/news/bitcoin-news-today-indonesia-considers-bitcoin-national-reserve-strategy-boost-economic-growth-2508/)