- Indonesia increases crypto taxes; shifts regulatory framework.
- Domestic tax doubles; offshore tax rises fivefold.
- Financial reshaping affects all major crypto players.
Indonesia’s Ministry of Finance will increase crypto transaction taxes from August 2025, affecting domestic and offshore exchanges, as it reclassifies crypto assets from commodities to financial instruments.
This adjustment aims to increase revenue amid growing crypto adoption, impacting transaction volumes and potentially prompting shifts to offshore platforms.
Indonesia’s government, led by the Ministry of Finance, introduces major changes in crypto taxation starting August 2025. Taxes on domestic transactions will double to 0.21% while offshore transactions face a fivefold increase to 1%.
These changes come as crypto assets are reclassified under financial instruments. The Ministry of Finance, with oversight from Otoritas Jasa Keuangan, aims to align legal treatments and improve tax compliance in response to rising crypto adoption.
Crypto traders and exchanges, such as Tokocrypto, will experience immediate impacts on operational costs and capital flows. The regulation notably eliminates VAT for buyers but raises it for miners, affecting industry profitability.
These adjustments may drive certain trading activities offshore. Financial Minister Sri Mulyani stated they “provide legal certainty” amid a burgeoning crypto market exceeding 650 trillion rupiah in transaction volumes in 2024.
Some exchanges request flexibility, urging a one-month grace period for smoother adherence. Tokocrypto, backed by Binance, is vocal about this transition, aiming to mitigate disruption and safeguard industry interests.
The policy could reshape market landscapes and regulatory attitudes. Historical patterns seen in similar global adjustments show potential migration to offshore platforms, as seen in India’s TDS/crypto tax hikes. Legal clarity may spur innovation under stricter supervision.
“Provide legal certainty for crypto asset trading transactions and adapt to developments in crypto asset trading.” — Sri Mulyani Indrawati, Finance Minister, Ministry of Finance
