Indonesia hikes crypto taxes to 0.21% domestic 1% offshore from August 2025

Indonesia is set to implement a major overhaul of its cryptocurrency tax framework, with new regulations effective from August 1, 2025. The changes include a 0.21% tax on domestic exchange transactions, up from 0.1%, and a sharp increase to 1% for offshore platforms, compared to the previous 0.2%. The reclassification of digital assets from commodities to financial instruments has been introduced under the supervision of Indonesia’s Financial Services Authority (OJK) [1][2].

The government has also eliminated value-added tax (VAT) for crypto buyers, which had previously ranged between 0.11% and 0.22%. However, the tax burden on mining operations has increased, with the mining tax rising from 1.1% to 2.2%, and the special 0.1% income tax on crypto mining scheduled to be phased out by 2026, shifting such income to standard tax brackets [3].

The move comes amid a significant rise in crypto adoption in Indonesia, with $157.1 billion in crypto inflows recorded between July 2023 and June 2024—surpassing the rest of the Central & Southern Asia and Oceania (CSAO) region [4]. Despite this, crypto tax revenue fell by 63% in 2023, even as Bitcoin’s price rose 159%, due to users increasingly using offshore platforms to avoid higher domestic fees [5].

Analysts suggest the tax increases could drive trading activity offshore, particularly given the 1% tax on cross-border transactions. Alex Chandra, a partner at an Indonesian law firm, noted this is the most significant change in the new framework, but emphasized that its success depends heavily on enforcement [6]. He also warned that the decentralized nature of crypto and the reluctance of offshore platforms to comply unless mandated could limit the policy’s effectiveness [7].

Local cryptocurrency exchanges will now face increased compliance demands, requiring them to strengthen reporting systems to meet OJK requirements. Maryna Kovalenko, co-founder of a crypto tax advisory firm, pointed out that while the removal of buyer VAT benefits new investors, the overall tax hikes may discourage frequent traders or high-volume activity [8].

The reforms reflect Indonesia’s attempt to regulate a fast-growing crypto sector while maintaining a stable tax revenue stream. However, their success will depend largely on the government’s ability to enforce compliance, particularly with offshore platforms that serve a large portion of the country’s crypto user base.

Source:

[1] Indonesia to Raise Taxes on Crypto Transactions: Reuters (https://www.coindesk.com/policy/2025/07/30/indonesia-to-raise-taxes-on-crypto-transactions-reuters)

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

[3] Indonesia Introduces Higher Taxes on Crypto (https://impakter.com/esg-news-indonesia-increase-crypto-tax)