Indonesia has announced significant changes to its crypto taxation policy, introducing higher levies for miners and sellers while offering relief to buyers through the removal of value-added tax (VAT) obligations on certain transactions. The updated rules, detailed in regulations No. 50/2025 and No. 53/2025, will take effect from August 1, 2025, according to the country’s Ministry of Finance.
These tax adjustments aim to bring more legal clarity to digital asset activities and reflect the evolving landscape of crypto trading in Southeast Asia’s largest economy.
Income Tax Doubled for Local Crypto Exchanges
Under the revised framework, income tax on crypto asset sales made via domestic exchanges has been increased from 0.1% to 0.21%. The move effectively doubles the tax rate for Indonesian traders using local platforms.
Foreign exchanges face an even steeper hike. Crypto sales conducted through overseas exchanges will now be taxed at 1%, up from the previous 0.2%. The steep increase reflects the government’s effort to encourage crypto trading on regulated domestic platforms and close loopholes for tax evasion.
Crypto Miners Face Heavy Tax Burden
In a move likely to impact Indonesia’s mining sector, the government has raised VAT for crypto miners from 1.1% to 2.2%. Additionally, a special income tax rate of 0.1% previously applicable to crypto mining has been scrapped.
Starting in 2026, mining income will be subject to standard personal income tax or corporate tax rates, depending on the miner’s legal status. The regulation clearly states that miners registered as taxable entrepreneurs will be treated similarly to retail traders. Those failing to comply with the updated rules will be subject to penalties as outlined in Indonesia’s general tax procedures law.
This shift is expected to significantly affect small-scale and independent miners, who will now face higher compliance costs and tighter regulations.
VAT Exemptions for Crypto Buyers
While taxes are rising for miners and sellers, the government has moved to ease the tax burden on buyers. Regulation 50/2025 confirms that crypto transactions “equated to securities” are now exempt from VAT.
An excerpt from the title page of Indonesia’s Ministerial Regulation No. 50/2025 (machine translated by Google). Source: Indonesia’s Ministry of Finance
Previously, buyers were required to pay VAT ranging between 0.11% and 0.22% on crypto purchases. This VAT clause has now been removed through regulation 53/2025, specifically eliminating articles 343 and 354 of the prior law.
According to a report by CNBC Indonesia, the VAT exemption brings crypto asset trading closer in alignment with traditional securities trading, which often enjoys preferential tax treatment.
Policy Shift Aims to Reflect Market Dynamics
Indonesia’s Finance Minister Sri Mulyani Indrawati stated that the revisions were necessary “to provide legal certainty for crypto asset trading transactions and adapt to developments in crypto asset trading.”
Finance Minister Sri Mulyani Indrawati
The move signals a more structured approach toward regulating digital assets, aiming to foster market maturity while ensuring proper tax collection from participants. The balance of stricter tax enforcement on the seller side and relief on the buyer end could support both revenue generation and investor participation.
The Indonesian government has previously shown cautious optimism towards crypto, allowing regulated trading while remaining wary of systemic risks. These latest reforms underscore Jakarta’s intention to integrate digital asset markets into its formal financial system without stifling innovation.
What This Means for Indonesia’s Crypto Sector
The updated tax framework is a mixed bag for the crypto ecosystem in Indonesia. While domestic exchanges may benefit from the tax gap with foreign platforms, miners and sellers will now face steeper tax obligations, which could impact operational viability, especially for smaller players.
On the other hand, removing VAT for buyers may encourage more retail participation and improve overall market liquidity.
As crypto regulation evolves globally, Indonesia’s approach offers a glimpse into how emerging markets are balancing innovation, investor protection, and state revenue. Stakeholders now await further clarifications from tax authorities as the August 1 implementation date approaches.
