Indonesia Crypto Tax Revenue Surges 180% in 2024 on Stricter Regulations and Growing User Base

Indonesia’s cryptocurrency tax revenue surged to 62 billion rupiah in 2024, a significant jump from 22 billion rupiah the previous year, driven by a series of regulatory changes and a growing user base. The government introduced a revised tax framework in 2024 that increased the tax rate on offshore crypto platforms from 0.2% to 1%, while domestic transactions were set at 0.21%, up from 0.1% [1]. These adjustments were part of broader efforts to bring digital assets under the Financial Services Authority (OJK) for oversight, reclassifying them from commodities to financial instruments. The government also eliminated value-added tax (VAT) for crypto buyers and raised the tax on mining activities to 2.2% from 1.1%. The current 0.1% income tax rate for miners is set to be phased out by 2026, with standard personal or corporate tax rules applying instead [1].

The 2024 tax revenue growth followed a 10.6% decline in 2023, attributed to a 51% drop in transaction volumes as users shifted to offshore platforms to avoid higher domestic fees [1]. The 2024 increase indicates that the new regulatory measures are beginning to reverse that trend, as the government seeks to capture a larger portion of the estimated $39.67 billion crypto market in Indonesia [1]. The country’s crypto user base now exceeds 20 million, surpassing local stock market investors and contributing to the market’s expansion and increased tax collections [1].

However, analysts have warned of potential challenges. Maryna Kovalenko of Kova Tax noted that while removing buyer VAT could reduce entry costs for new investors, the higher tax rates may discourage frequent traders and add compliance burdens for startups [1]. Alex Chandra of IGNOS Law Alliance raised concerns that the increased 1% tax on offshore platforms might push some activity to non-compliant platforms or lead to avoidance strategies. He also highlighted the difficulty in enforcing tax regulations due to the decentralized nature of crypto [1].

Despite these concerns, Indonesia remains a key market in the region. It was the top recipient of crypto inflows in Central & Southern Asia and Oceania, with $157.1 billion in asset inflows recorded between July 2023 and June 2024 [1]. The government’s ability to enforce the new tax structure—especially for foreign platforms—will likely determine the long-term success of the regulatory overhaul. Early 2025 figures show continued momentum, with 11.5 billion rupiah already collected, underscoring the positive impact of these reforms.

The growth in crypto tax revenue reflects Indonesia’s evolving regulatory environment and the maturation of its digital asset market. As the government continues to refine its approach, the balance between taxation, compliance, and market accessibility will be crucial in sustaining investor confidence and ensuring continued expansion [1].

Source:

[1] Indonesia to Hike Crypto Taxes, Target Offshore Platforms with Higher Rates Next Month (https://decrypt.co/332539/indonesia-to-hike-crypto-taxes-target-offshore-platforms-with-higher-rates-next-month)