Bitcoin News Today: Indonesia Considers Bitcoin for National Reserves Amid High Crypto Taxes

Indonesia is currently examining the feasibility of incorporating Bitcoin into its national reserve assets, despite having some of the world’s highest cryptocurrency tax rates. In recent discussions, representatives from the advocacy group Bitcoin Indonesia met with officials in the office of Vice President Gibran Rakabuming Raka to outline a potential strategy leveraging Bitcoin as a tool for long-term economic growth [1]. The proposal highlights Indonesia’s abundant hydroelectric and geothermal energy resources, which could support cost-effective and sustainable Bitcoin mining operations [2].

While no formal policy shift has been announced, the engagement signals a shift in how digital assets might be perceived at the national level. The discussions also emphasized the importance of public education on Bitcoin, with Vice President Raka’s office reportedly showing support for such initiatives [3]. Bitcoin Indonesia cited a long-term price projection by MicroStrategy co-founder Michael Saylor, who forecasts Bitcoin reaching $13 million by 2045 under a base scenario and up to $49 million in a bullish case [4]. This reflects a forward-looking perspective on Bitcoin’s potential as a reserve asset.

Despite the government’s interest, the regulatory landscape remains challenging. Indonesia continues to enforce a ban on cryptocurrency payments, a policy in place since 2017. However, enforcement is inconsistent, with Bitcoin still accepted in certain tourist areas like Bali, particularly in real estate transactions [5]. In a separate move, the Finance Ministry has significantly increased taxes on crypto activities, including doubling income tax on domestic crypto sales and raising value-added tax on mining from 1.1% to 2.2% [6].

Indonesia’s macroeconomic indicators, including a debt-to-GDP ratio of 39% and stable inflation at 0.76% as of January 2025, suggest the country does not face the same level of economic urgency as some other nations exploring Bitcoin as an inflation hedge [7]. Nevertheless, the interest in Bitcoin as a reserve asset aligns with a global trend where governments are reevaluating the role of digital assets in economic diversification and resilience [8].

Bitcoin Indonesia has proposed a potential allocation of up to $18.3 billion in reserves to Bitcoin, which could lock up as much as 200,000 BTC. If implemented, such an allocation could generate substantial returns and contribute to long-term economic development [9]. The initiative remains in the exploratory phase, but the inclusion of Bitcoin in national reserve discussions marks a significant development in Indonesia’s evolving stance toward digital assets [10].

Sources:

[1] https://www.cryptopolitan.com/indonesia-explores-national-bitcoin-reserve/

[2] https://coincentral.com/indonesia-explores-bitcoin-for-national-reserves-after-key-meeting/

[3] https://www.instagram.com/p/DM_TEiCI7iY/

[4] https://thecryptobasic.com/2025/08/05/indonesia-considers-bitcoin-as-part-of-national-reserve/

[5] https://www.bitcointalk.org/index.php?topic=5522234.1060

[6] https://www.binance.com/en/square/post/08-05-2025-indonesia-explores-bitcoin-as-national-reserve-asset-27907694531466

[7] https://www.panewslab.com/en/articles/33887812-83a0-4523-a1bd-2e537558d919

[8] https://www.bitget.com/news/detail/12560604897073

[9] https://cointelegraph.com/news/indonesia-exploring-bitcoin-reserve-strategy?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound