Indonesia Proposes National Bitcoin Reserve and Mining Plan
Indonesia’s Bitcoin Indonesia group has pitched a national Bitcoin reserve to Vice President Gibran Rakabuming Raka’s office. The Bitcoin reserve strategy hinges on Bitcoin mining powered by hydroelectric and geothermal energy. It includes a nationwide Bitcoin education program to drive crypto adoption.
The proposal cites Michael Saylor’s price forecasts of US$13 million per BTC in a base scenario and US$49 million in a bull case by 2045. Indonesia’s stable fiscal backdrop, with a 39% debt-to-GDP ratio and 0.76% inflation, supports using Bitcoin as a hedge against future risks.
Officials also reviewed recent crypto regulation and tax policy. Crypto trading remains legal, while payments in crypto are banned. Income tax on local trades doubled to 0.21%, foreign trades now taxed at 1%, and VAT on mining rose to 2.2%. These discussions signal growing crypto regulation and long-term economic planning in Indonesia.
Bullish
Indonesia’s exploration of a national Bitcoin reserve, backed by the Vice President’s office, signals growing institutional support and legitimacy for Bitcoin. The plan to leverage renewable energy for Bitcoin mining and implement nationwide Bitcoin education could drive adoption and network security. Additionally, the review of crypto regulation and tax policy provides clearer guidelines for traders and miners. These developments are likely to boost demand for BTC over the long term, creating a bullish sentiment. In the short term, markets may react to regulatory updates and tax increases, but the overall trajectory points to positive price impact for Bitcoin.