Indonesia Raises Crypto Taxes on Miners and Traders Amid Regional Competition

Indonesia has implemented significant changes to its cryptocurrency taxation regime, effective August 1, following two new regulations issued by the Ministry of Finance—50/2025 and 53/2025. The updated rules alter tax rates across different crypto activities, with varying impacts on users, including miners, traders, and individual investors. The income tax on domestic crypto transactions has risen from 0.1% to 0.21%, while cross-border trades now face a tax rate increase from 0.2% to 1%. Finance Minister Sri Mulyani Indrawati emphasized that the changes aim to enhance legal certainty and align with the evolving landscape of crypto trading [1].

The most notable tax hikes were imposed on crypto miners, whose VAT rate has doubled from 1.1% to 2.2%. Moreover, starting in 2026, miners will no longer benefit from a special 0.1% income tax rate and will instead be subject to standard personal or corporate income tax rates [1]. This adjustment is expected to place additional financial pressure on mining operations, especially smaller-scale ones, potentially prompting some to relocate to more favorable jurisdictions [2].

In contrast, crypto buyers received a more favorable adjustment. The Ministry of Finance has removed VAT obligations for crypto purchases that previously ranged between 0.11% and 0.22%. Regulation 53/2025 formally eliminates VAT for such transactions, according to local reports [1]. This shift is expected to encourage retail adoption and reduce entry barriers for individual investors.

The new policy diverges from the approaches of several neighboring countries, such as Singapore and Malaysia, which offer tax exemptions for individual investors, provided they are not classified as professional traders [1]. Japan is reportedly considering reducing crypto tax rates from 55% to 20% for retail investors, while Thailand has announced a five-year crypto tax exemption to position itself as a digital asset hub [3]. These developments highlight the growing competition among Asian economies to attract crypto activity through favorable regulatory environments.

Indonesia’s mixed taxation approach reflects a broader regional trend where governments seek to balance tax revenue generation with the need to remain competitive in the digital asset space. The increased taxes on miners and traders may inadvertently drive activity to offshore platforms, especially as the 1% tax on foreign exchange transactions—a fivefold increase—could incentivize some traders to use unregulated exchanges [2]. The removal of VAT on crypto purchases, however, may help solidify Indonesia’s position as a market that supports retail participation.

Financial analysts suggest that the policy changes could influence trading patterns across Southeast Asia, potentially affecting the dominance of domestic exchanges [2]. The regulatory shift also signals an increased focus on curbing speculative trading, with higher foreign exchange taxes potentially deterring capital outflows to international platforms.

Overall, the policy represents a delicate balance between fostering innovation and ensuring fiscal responsibility. The government aims to capture value from the growing digital asset sector while maintaining accessibility for retail investors. However, the effectiveness of this strategy will depend on how market participants adapt to the new tax structure and whether the country can maintain its competitive edge in the rapidly evolving crypto landscape.

Source: [1]Indonesia Restructures Crypto Taxation With Mixed Impact On Different User Groups (https://coinmarketcap.com/community/articles/688a87c5bcf80b1dc7347ca5/)