Bitcoin News Today: Indonesia Considers Bitcoin as Reserve Asset to Diversify Economy

The Indonesian government is actively considering the integration of Bitcoin into its national economic strategy, potentially as a reserve asset. In a recent development, Bitcoin Indonesia—a collective representing the cryptocurrency community—was invited to present before officials in the office of Vice President Gibran Rakabuming Raka. The group outlined how Bitcoin could contribute to Indonesia’s long-term financial stability, including its potential use in building national reserves and leveraging renewable energy for mining operations [1].

The discussions centered around the idea of using Indonesia’s abundant geothermal and hydroelectric resources to support Bitcoin mining, a strategy that could create jobs and stimulate economic growth. This approach is relatively uncommon in government planning but is seen as a forward-thinking move by some in the cryptocurrency community. The pitch also highlighted education as a key factor in driving widespread adoption, with officials emphasizing the importance of financial literacy around digital assets [1].

Notably, the proposal included bullish projections from industry figures such as MicroStrategy’s Michael Saylor, who forecasts Bitcoin reaching between $13 million and $49 million by 2045. While these projections are speculative, they were used to illustrate the long-term potential of Bitcoin as a store of value [1].

Indonesia currently has a population of over 280 million and a GDP of approximately $1.4 trillion, placing it among the world’s largest economies. Despite a relatively low debt-to-GDP ratio of 39% and a controlled inflation rate of 0.76% as of January 2025, the government is exploring new avenues to diversify its economic strategy. This move aligns with global trends where countries are increasingly considering cryptocurrencies as part of their financial portfolios, particularly amid inflation concerns and rising global debt levels [1].

The country’s regulatory environment is also evolving. MEXC Ventures, a major cryptocurrency exchange, has recently invested in Indonesian crypto exchange Triv at a $200 million valuation. This comes after the implementation of updated crypto tax rules on August 1, which include a 0.21% tax on domestic exchange users and a 1% tax for those using foreign platforms. While these changes may increase the cost of trading, they also signal a more structured and regulated approach to digital assets [1].

The Indonesian government currently allows crypto as an investment but not as a means of payment. In 2023, crypto transactions in the country reached 650 trillion rupiah ($40 billion), with over 20 million users across licensed platforms—surpassing the country’s stock market participation. The rapid growth of the sector is reflected in the significant rise in crypto tax revenue in 2024, which reached 620 billion rupiah ($38 million), a 181% increase from the previous year [1].

The ongoing discussions and regulatory adjustments indicate a nation at a crossroads. While Bitcoin is not yet a core component of Indonesia’s economic strategy, its potential role in shaping the country’s financial future is gaining serious attention.

Source: [1] Indonesia Explores Bitcoin as Reserve Asset to Boost Economy (https://cryptonews.com/news/indonesia-explores-bitcoin-as-reserve-asset-to-boost-economy/)