Cryptocurrency Tax Revenues in Indonesia Reflect Market's Changeability
Indonesia, a pioneer in taxing digital assets in the region, has experienced a rollercoaster ride with its crypto tax earnings. The country's crypto tax income has shown signs of unpredictability, with significant fluctuations from one year to another.
In 2022, the government collected IDR 24.6 billion in crypto taxes, marking the beginning of its foray into taxing crypto trades. However, the following year, 2024, saw a dramatic increase, with tax revenue surging by 173% compared to the previous year, amounting to IDR 62 billion. This growth trend, however, reversed in 2025, leading to a revision of tax policies with higher rates.
The unpredictable nature of crypto prices is the main reason for the instability in crypto tax income. When the market is doing well and prices go up, more taxes are collected due to increased trading activity. Conversely, if the market slows down or prices fall, the government collects less in crypto taxes. As a result, the tax income from crypto in Indonesia goes up when trading is active and drops when trading slows down.
The government's efforts to keep up with the evolving crypto market and maintain a safe and fair environment have not gone unnoticed. Experts suggest that alongside tax collection, clear rules are necessary to ensure safety and fairness in the crypto space.
In 2025, the country has collected IDR 11.5 billion in crypto tax, a significant drop compared to 2024. To address this, the government increased tax rates on cryptocurrency transactions starting August 1, 2025. The new rates are 0.21% on domestic crypto transactions (up from 0.1%) and 1% on foreign platform transactions (up from 0.2%).
Historically, Indonesia classified digital assets as commodities under the Commodity Futures Trading Regulatory Agency (Bappebti). However, in 2025, the regulatory and tax oversight shifted to the Financial Services Authority (OJK) as digital assets were reclassified as financial instruments. This reclassification prompted the removal of value-added tax (VAT) on crypto buying transactions, while VAT on mining activities doubled from 1.1% to 2.2%, and mining profits now fall under standard income tax starting in 2026.
Indonesia's crypto space is still in its early stages, with an expanding user base of over 20 million people. The government's actions demonstrate a commitment to regulating and taxing this emerging market, which could bring in more money for the government as more people get involved in crypto.
In conclusion, the crypto market's fluctuations will continue to affect Indonesia's crypto tax earnings. The government's recent decision to increase tax rates on cryptocurrency transactions reflects its efforts to stabilize and boost state revenues amid an expanding crypto user base. Clear regulations are necessary to maintain a safe and fair crypto environment in Indonesia, ensuring its continued growth and development in the digital asset space.
[1] Kompas.com. (2025). Indonesia Raises Crypto Tax Rates to Boost State Revenue. Retrieved from https://www.kompas.com/bisnis/read/2025/08/01/20320627/indonesia-menaikkan-tarif-pajak-kripto-untuk-mengurangi-defisit-dana-negara
[2] DetikFinance. (2025). Indonesia Increases Crypto Tax Rates to Stabilize Revenue. Retrieved from https://finance.detik.com/berita/d-9733461/indonesia-menaikkan-tarif-pajak-kripto-untuk-mengurangi-defisit-dana-negara
[3] CNN Indonesia. (2025). Indonesia Raises Crypto Tax Rates to Boost State Revenue. Retrieved from https://www.cnnindonesia.com/ekonomi/20250801180903-19-335895/indonesia-menaikkan-tarif-pajak-kripto-untuk-mengurangi-defisit-dana-negara
[4] Bisnis.com. (2025). OJK to Regulate Cryptocurrencies as Financial Instruments. Retrieved from https://www.bisnis.com/berita/perbankan-dan-ekonomi/20250716/ojk-akan-mengatur-kripto-sebagai-instrument-keuangan
[1] The increase in crypto tax rates in Indonesia, as reported in Kompas.com, aims to stabilize and boost state revenues amidst an expanding crypto user base.[2] As stated in DetikFinance, the government's decision to raise crypto tax rates is a response to the unpredictable nature of crypto prices and their impact on the stability of crypto tax income.[3] With the shift of regulatory and tax oversight to the Financial Services Authority (OJK), as reported by CNN Indonesia, digital assets are now classified as financial instruments, shaping the future of crypto taxation and investment in Indonesia.[4] To maintain a safe and fair crypto environment, it is suggested by experts, as reported by Bisnis.com, that along with tax collection, clear rules are necessary for regulating cryptocurrencies in Indonesia.
