Indonesia raises seller and miner crypto taxes, cuts VAT
Indonesia’s Finance Ministry will enforce updated crypto tax rules under Regulations No. 50/2025 and No. 53/2025 from August 1. The domestic crypto tax on exchange trades rises from 0.1% to 0.21%, while offshore exchange trades jump from 0.2% to 1%, increasing the cost of crypto trading. The VAT on crypto mining doubles from 1.1% to 2.2%, and the 0.1% special mining income tax is removed. From 2026, mining profits fall under standard personal or corporate income tax. Buyers gain relief as transfers of crypto assets classified as securities are now exempt from 0.11–0.22% VAT. Finance Minister Sri Mulyani Indrawati said these measures aim to provide legal certainty and recapture revenue lost to offshore platforms. Traders should prepare for potential volume shifts, fee repricing, and broader regulatory impacts in Southeast Asia’s third-largest crypto market.
Bearish
The hike in crypto tax rates raises trading costs for sellers and miners, which is likely to dampen trading volumes and miner profitability in the short term. Higher domestic and offshore crypto tax levies and increased mining VAT reduce net returns and may push traders to seek lower-cost markets. Although VAT relief for buyers offers some offset, the overall effect is an increase in trading expenses. In the long term, clearer crypto tax regulations and alignment with international standards could enhance market stability, but the immediate cost burden suggests a bearish impact on price momentum and trading activity.