Indonesia Crypto Tax Revenue Surges 173% in 2024 Amid Market Boom

Indonesia’s cryptocurrency tax revenue has shown significant fluctuations over recent years, mirroring the broader volatility of the crypto market. In 2022, the country collected IDR 24.6 billion in crypto-related taxes, but the amount dropped to IDR 22 billion in 2023, likely due to a downturn in trading activity. By 2024, the figure jumped to IDR 62 billion, a 173% increase from the previous year. However, in 2025, tax revenue stood at IDR 11.5 billion as of the first quarter, signaling a slower start to the year amid a potentially subdued market [1].

The government imposes a 0.1% income tax and a 0.11% value-added tax (VAT) on every crypto trade. These rates, while low, can generate substantial revenue when trading volumes are high. The 2024 tax collection surge demonstrates how market activity directly affects government earnings. Officials have acknowledged that crypto tax revenue is inherently unstable, rising with increased trading and falling when market conditions worsen [2].

In an effort to bolster domestic crypto activity and increase oversight, Indonesia implemented a series of tax reforms on August 1, 2025. Domestic exchanges now face a higher transaction tax of 0.21%, up from 0.1%, while foreign platforms are taxed at 1%, a sharp increase from the prior 0.2%. The government aims to incentivize the use of locally regulated platforms and reduce reliance on international exchanges [3]. This aligns with a broader strategy to promote domestic financial infrastructure while ensuring regulatory control over the rapidly expanding sector [4].

The country’s crypto market has expanded rapidly, with transaction values tripling in 2024 to 650 trillion rupiah ($39.67 billion). The number of crypto users now exceeds 20 million, surpassing traditional stock market participants. A significant portion of these users are young—60% fall between the ages of 18 and 30—and the widespread use of smartphones (nearly 91% penetration) has accelerated the adoption of mobile-first trading apps [5].

Regulatory oversight has also evolved, with crypto assets reclassified as financial instruments under the Financial Services Authority (OJK) starting in January 2025. This move places digital currencies on par with traditional financial products, enhancing legal clarity and regulatory stability [6]. The shift reflects a broader effort to integrate crypto within the national financial system and attract institutional investors who previously hesitated due to uncertainty.

Further adjustments include the removal of VAT for crypto buyers, which previously ranged between 0.11% and 0.22%. In contrast, miners now face a doubled VAT of 2.2%, and beginning in 2026, they will no longer benefit from a reduced 0.1% income tax rate, instead paying standard tax rates [7]. These changes aim to create a more balanced tax environment while maintaining economic incentives for market growth.

Industry players have generally responded positively to the reforms. Tokocrypto, a major local exchange supported by Binance, welcomed the changes but requested a grace period for the industry to adjust. The company highlighted the importance of strong oversight, particularly for foreign platforms, where the 1% tax rate contrasts sharply with the 0.21% applied domestically [8]. The disparity is intended to encourage traders to use regulated local exchanges, reinforcing the government’s policy direction.

Despite the higher tax burden, analysts remain optimistic about the sector’s future. The young and tech-savvy population continues to drive adoption, and improved regulatory clarity may attract more institutional interest. The government’s strategy of supporting domestic crypto infrastructure while maintaining regulatory control appears to be paying off, as reflected in the sector’s strong revenue-generating potential [9].

Source:

[1] Indonesia Crypto Tax Income Reflects Market Volatility (https://coinfomania.com/indonesia-crypto-tax-fluctuates/)

[3] Indonesia Shakes up Crypto Taxes as Digital Asset ... (https://bravenewcoin.com/insights/indonesia-shakes-up-crypto-taxes-as-digital-asset-trading-explodes)