Indonesia raises crypto taxes for foreign exchanges as domestic use surges 39%

Key Points

1. Domestic crypto platforms face a tax increase from 0.11% to 0.21%, while foreign exchanges like Binance, Bitget, and Bybit are taxed at 1%, up from 0.2%.

2. VAT on crypto mining doubles from 1.1% to 2.2%, but buyers no longer pay VAT on purchases, easing their financial burden.

3. Cryptocurrency transaction volumes in Indonesia tripled in 2024, reaching $39.67 billion, with May 2025 alone seeing transactions of $3.02 billion, a 39.21% monthly increase.

4. The number of crypto investors in Indonesia grew to 14.78 million by May 2025, a 4.38% increase from April, reflecting rising digital asset market activity.

5. The new regulations aim to tighten oversight on crypto transactions and mining while supporting domestic market growth by adjusting tax structures.