Indonesia pushes on Bitcoin: new taxes and rules from August 1st

Starting from August 1st, the fiscal tightening on the cryptocurrency industry in Indonesia takes effect: the new regulation reshapes the framework for those who buy, sell, and mine Bitcoin, with tax increases almost everywhere and few exemptions.

What changes for traders: taxes doubled on Bitcoin

The new rules (No. 50/2025 and No. 53/2025) of the Indonesian Ministry of Finance primarily impact those trading crypto assets through local exchanges. The income tax on sales of Bitcoin and other cryptocurrencies on domestic platforms increases from 0.1% to 0.21%. An increase of 110%, which weighs particularly on retail traders but also on professional operators.

The situation worsens for those who bet on offshore platforms: selling crypto on foreign exchanges now involves a much stricter tax imposition, which rises from 0.2% to 1%. A decision that strongly questions the convenience of using international exchanges and clearly aims to “push” volumes and activities onto Indonesia’s regulated exchanges.

What’s new for miners: more taxes and new rules from 2026

The news does not spare the miners. The VAT (value-added tax, equivalent to the Italian IVA) on crypto asset mining activities has doubled: from the previous 1.1% to the new 2.2%. A net increase that could impact the profitability of the national mining activity, already challenged by the price volatility of digital assets.

But the key deadline is 2026: the regulation abolishes the special income tax of 0.1% for miners, replacing it with more stringent obligations. Miners will indeed be treated as “taxable retail entrepreneurs” and subject to personal or corporate income tax according to the normal tax tables. A potentially onerous change, making it essential for operators to update their tax position.

Attention: those who do not comply with the new provisions will be subject to sanctions according to the current legislation. Therefore, it is crucial for miners and operators to adapt to the new rules without waiting until the last minute.

VAT exemption for certain transactions: what does it consist of?

Not everything is price increase or tightening. The reform introduces a novelty welcomed by the local crypto community: the exemption of VAT for transfers of digital assets considered “equivalent to securities.” In practice, some trading transactions of Bitcoin and other crypto assets will no longer incur the VAT levy of 0.11%-0.22% that was in place until now for buyers. This eliminates a cost item and helps simplify the tax framework, providing greater legal certainty to operators and investors.

The measure addresses the need to adapt to the continuous evolution of cryptocurrencies and digital products, emphasizing how regulation – although stricter – also aims for better clarity on rules and withdrawals.

How do the new rules impact the Indonesian crypto market?

Indonesia had already stood out in recent years for a progressively more structured regulatory approach to crypto assets. Now, with these new rates, the government aims to expand tax revenue from the rapidly growing sector but also to consolidate control over transactions, especially by discouraging the use of exchange esteri.

With the taxation on sales reaching up to an extra 1% on foreign exchanges, there might be a contraction of outgoing volumes towards offshore, while domestic operators will gain competitiveness. However, the double levy (VAT + income tax) on mining and trading, especially for small investors, risks burdening the tax load and pushing part of the activity towards informality.

Despite this, the removal of VAT for certain types of trading moves towards strengthening legal certainty, which is essential for attracting capital and international projects in the Indonesian crypto sector.

Who is obligated to comply with the new laws and what are the risks?

The new rules apply to anyone selling crypto assets on regulated exchanges in Indonesia from August 1st, as well as to legally registered miners. Individuals, companies, and professional operators are included.

Miners, in particular, must take into account the change of status to “taxable retail entrepreneurs”, with all the accounting complications that it entails. Non-compliance with the provisions leads to significant penalties, as specified by the updated Indonesian tax laws; it is therefore better to get updated immediately with your tax advisor.

What happens now: opportunities, risks, and next steps

The reform initiated by the Ministry of Finance represents an important case study for those following the regulatory evolution of cryptocurrencies on a global level. Indonesia confirms the path of fiscal control and selective legalization: more taxes where the sector is mature, exemptions and clarity where it is necessary to stimulate investments and legitimate exchanges.

However, the challenge of regional competitiveness remains: countries like Singapore or Malaysia apply different rules, and the exodus of operators to more “crypto-friendly” jurisdictions could be a direct consequence.

In the coming months, the practical effects of the tightening will be measured on the volumes of local exchanges, on the health of national mining, and on the attractiveness for international players.