Indonesia doubles crypto tax to 0.21% in 2025 overhaul

Indonesia is set to implement significant changes to its cryptocurrency taxation framework in 2026, with new measures expected to reshape the country’s digital asset landscape. Starting in August 2025, the government will increase the transaction tax on domestic crypto exchanges from 0.1% to 0.21%, a move that doubles the current rate [8]. For foreign platforms, the tax will jump to 1%, a substantial increase from prior levels [10]. These changes will apply to both domestic and international crypto platforms, signaling a broader regulatory push to integrate digital assets into the formal financial system.

The revised tax regime also marks the end of the 0.1% special income tax on crypto mining. Instead, income from mining will now be subject to standard personal or corporate income tax rates [1]. This shift implies a move away from a preferential tax structure, effectively doubling the value-added tax (VAT) on mining activities to 2.2%. As a result, mining operations are expected to bear a heavier fiscal burden, potentially affecting the scale and profitability of such activities in the country.

Buyers of digital assets will see a relief in the form of an exemption from the 10% VAT that was previously applied to crypto transactions [5]. The removal of this tax is likely intended to stimulate demand while shifting the compliance and cost burden to sellers and miners. This strategic adjustment reflects a balance between encouraging market participation and ensuring government revenue.

The Ministry of Finance has introduced two new regulations—50/2025 and 53/2025—to formalize these changes. Under these rules, cryptocurrencies will be reclassified as a “financial asset,” an important step toward aligning digital assets with traditional financial instruments and enabling more consistent regulatory oversight [4]. The move is part of a broader effort to bring crypto activities under a more structured legal and financial framework.

Analysts suggest that the increased tax rates, particularly on foreign transactions, may lead to a shift in trading behavior. Users could be driven toward domestic platforms, where the tax burden is lower, thus consolidating regulatory control within the country [10]. This could also impact liquidity and trading volumes, with market participants adjusting strategies to account for the new compliance requirements.

The timing of these reforms, with implementation starting in mid-2025 and full enforcement by 2026, provides market actors with a transition period to adapt. Against the backdrop of expected growth in crypto adoption—projected to increase from 16.56% in 2025 to 16.98% in 2026—these changes appear to be part of a strategic effort to manage and capitalize on the expanding digital asset ecosystem [6].

By adjusting the tax rates on transactions and mining, Indonesia is recalibrating its approach to digital assets, aiming to foster growth while enhancing financial oversight. The exemption of buyers from VAT further underscores this balanced strategy, encouraging participation in the market while ensuring the state’s stake in digital asset transactions.

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[1] https://www.reuters.com/sustainability/boards-policy-regulation/indonesia-raise-tax-rate-crypto-transactions-2025-07-30/

[4] https://cryptorank.io/news/feed/1e24d-indonesia-recognizes-crypto-as-financial-asset-announces-tax-law-overhaul

[5] https://www.bitdegree.org/crypto/news/indonesia-slaps-higher-crypto-taxes-drops-vat-for-buyers

[6] https://www.mitrade.com/au/insights/news/live-news/article-3-997410-20250730

[8] https://www.ainvest.com/news/indonesia-doubles-domestic-crypto-tax-0-21-raises-foreign-seller-rate-1-regulatory-shift-2507-2507/

[10] https://www.ccn.com/news/crypto/indonesia-tightens-grip-crypto-steep-new-taxes/