Indonesia has enacted comprehensive reforms to its cryptocurrency taxation system, significantly increasing offshore transaction fees and doubling mining levies to regulate its $39.67 billion digital asset market. The changes aim to simplify local investor onboarding while strengthening oversight of the rapidly expanding sector.
Effective August 1, 2024, offshore cryptocurrency sales tax increased from 0.2% to 1%, while domestic exchange transaction fees rose from 0.1% to 0.21%. Mining levies doubled to 2.2% under the new framework. The overhaul additionally removes value-added tax (VAT) requirements for crypto buyers to discourage offshore trading activity. Indonesia’s Financial Services Authority (OJK) concurrently reclassified digital assets as regulated financial instruments to enhance consumer protections.
The regulatory adjustments follow a 63% drop in crypto tax revenue during 2023 despite Bitcoin’s 159% price appreciation, a decline attributed to shrinking transaction volumes and capital flight to offshore platforms. Authorities anticipate the revised structure will bolster domestic compliance and tax collection through heightened oversight mechanisms.