Indonesia’s Ministry of Finance is set to increase tax rates on cryptocurrency transactions as of August 1, according to a Reuters report dated July 30, 2025. Tax rates will rise to 0.21% for sellers on domestic exchanges and 1% on foreign platforms, while buyers will be exempt from VAT. This adjustment is anticipated to redefine the cost balance in the cryptocurrency market.
Details of the Tax Regulation
In the updated system, the seller tax rate on domestic cryptocurrency exchanges will increase to 0.21%, effectively doubling from the previous 0.1%. For sellers on foreign crypto exchanges, the rate will escalate from 0.2% to 1%, marking a fivefold increase. Buyers, who previously faced a VAT range of 0.11% to 0.22%, will now be fully exempt. These regulations will take effect on August 1, 2025.
As for cryptocurrency mining, VAT will be raised from 1.1% to 2.2%. Additionally, the 0.1% special income tax is set to be abolished in 2026, bringing miner incomes under the general income tax tier.
Potential Impact of New Rates on Investors and the Market
The sharp tax hike is not expected to deter international interest in the Indonesian market. OSL, based in Hong Kong, entered a deal in June 2025 to acquire 90% of a local cryptocurrency exchange operated by Evergreen Crest, an Indonesian firm, for $15 million.
In its submission to regulators, OSL emphasized Indonesia’s “young population, solid economic foundation, and rapidly increasing cryptocurrency adoption” as factors conducive to growth.
