The Directorate General of Taxes (DGT) in Indonesia is developing new rules for taxing crypto assets. This is due to the change in the status of cryptocurrencies—from a commodity to a digital financial instrument.
The transfer of supervision from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) has necessitated adjustments to the tax structure.
Director General of Taxes Bimo Widjajanto confirmed the reclassification on July 22: “Previously, we regulated cryptocurrency as a commodity. Now, as it transforms into a financial instrument, we must adjust the rules.
The reform of cryptocurrency taxation faces several challenges:
- Ensuring legal certainty.
- Creating a fair taxation system.
- Maintaining competitiveness with other countries.
- Enhancing oversight of cross-border digital transactions.
- Balancing state revenue with market participants' convenience.
Until the changes officially take effect, Minister of Finance Regulation (PMK) No. 68 of 2022 is in force:
Income Tax (PPh):
- 0.1% — for transactions through a licensed platform.
- 0.2% — for transactions through an unlicensed platform.
Value Added Tax (VAT):
- 0.11% — if the provider is a physical crypto asset trader.
- 0.22% — if the provider is not a physical trader.
VAT applies to various operations: purchasing crypto assets, exchanging digital assets, and transferring assets to another account for non-transactional purposes. Buying Bitcoin for $10,000 incurs taxes of up to $32.
The new status of crypto assets as financial instruments opens the possibility of abolishing VAT. This aligns with the taxation of other financial products in Indonesia—stocks, bonds, and mutual funds, which are exempt from VAT.
Advantages of abolishing VAT:
- Simplifying the tax structure.
- Reducing transaction costs for investors.
- Increasing the competitiveness of the national digital asset industry.
Since PMK 68 was adopted in May 2022, the crypto industry has collected 1.2 trillion Indonesian rupiah in taxes in the first quarter of 2025. This figure demonstrates the real contribution of cryptocurrencies to the state's financial situation.
The revision of cryptocurrency tax rules signifies the integration of digital assets into Indonesia's national financial system. With sound policies, the country can strengthen its position in the global digital economy and create a healthier ecosystem for the development of the crypto industry.
There is no clear timeline for when the changes will take effect. The DGT will continue development and issue an official statement once the rules are adopted.
For those conducting business in Indonesia, it is convenient to outsource the bureaucratic part of the work:
- submission of tax reports and accounting declarations,
- investor reports,
- tax consulting,
- obtaining tax numbers (NPWP), etc.
In addition to handling visa issues, this is managed by the company Legal Indonesia.
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