Amid its regulatory shift, Indonesian financial authorities are set to increase taxes on cryptocurrency transactions and miners at the end of the week, with a higher rate for trades conducted on overseas platforms.
On Wednesday, Indonesia’s Finance Ministry announced updated tax regulations on cryptocurrency transactions and miners, effective August 1, 2025. Finance Minister Sri Mulyani Indrawati affirmed that the Minister of Finance Regulation (PMK) 50/2025 and 53/3035 are necessary to “provide legal certainty” and align digital asset trading sales with the sector’s development.
PMK 50/2025 detailed that the digital assets “equated to securities” were exempt from VAT rates, but notes that “taxable services such as the provision of electronic facilities used to facilitate cryptocurrency trading transactions by Electronic Trading System Operators (PMSE) or taxable services such as cryptocurrency transaction verification by cryptocurrency miners remain subject to VAT.”
The regulations detailed that PMSEs and miners who do not fulfill the provisions “shall be subject to sanctions as regulated in the General Provisions and Tax Procedures Law.”
In a statement, Tokocrypto called for fiscal incentives to bolster innovation in the industry, arguing that the new crypto tax rate would still be higher than the capital gains tax rate used in stock market investments, Reuters noted.
The company reportedly emphasized “the importance of strengthening oversight and tax enforcement on crypto asset transactions conducted through foreign platforms.”
According to the regulator’s data, Indonesia had over 20 million crypto exchange users in 2024, surpassing the number of investors in the stock market, while the total transaction value of digital assets tripled to $39.67 billion. The country has also remained one of the highest adoption rates in the world, ranking 3rd and surpassing the US and Russia by trader numbers in 2024.
Last year, the government shifted from its highly criticized cautious approach to a more welcoming, but still firm, regulatory stance, expected to foster a more transparent and comprehensive regulatory framework that aligns with international standards.
