- Indonesia hikes crypto tax to 0.21% locally, 1% offshore, aiming to boost revenue.
- New tax rules shift crypto from commodity to financial asset under tighter control.
- Ethereum, USDT, and Solana face stiffer taxes, raising costs for miners and traders.
Indonesia has enforced a sweeping crypto tax hike starting August 1, intensifying fiscal pressure on both domestic and offshore crypto trading. The new regulation raises transaction tax rates significantly, targeting the booming digital asset market worth $39.67 billion in 2024. This tax overhaul reflects a strategic government move to boost revenue and tighten oversight in the fast-evolving sector.
Bitcoin Faces Heavier Regulation as Transaction Taxes Climb
Indonesia has increased the crypto tax on Bitcoin trades hosted by local exchanges to 0.21%, up from the previous 0.1%. In contrast, trades conducted via overseas platforms will face a sharper 1% tax, previously just 0.2%. Authorities removed value-added tax (VAT) for buyers, while sellers remain fully taxed under the updated structure.
Bitcoin, as a dominant trading asset, now faces regulatory costs higher than those in the stock market. These taxes are part of a broader shift categorizing crypto as a financial asset, moving away from its prior commodity status. The change comes as younger traders, especially those aged 18 to 30, drive Bitcoin adoption nationwide.
Indonesia aims to discourage the migration of crypto activity to unregulated offshore exchanges. Local exchanges previously warned that unequal tax burdens reduced their competitiveness. The government now seeks to close this gap by implementing stricter rules and new tax structures on foreign platforms.
Ethereum Trading Hit by Higher Tax Burdens
Ethereum transactions are also subject to the updated crypto tax policy, which applies to all domestic and overseas trades equally. While the VAT relief may offer minimal savings for buyers, sellers continue to shoulder the brunt of taxation. The gap between crypto and stock market tax rates is widening, placing Ethereum trades at a 30% tax rate disadvantage.
The revised tax rates come as Ethereum gains traction among younger, tech-savvy users who prefer decentralized applications. With 21 million active users in the Indonesian crypto space, Ethereum remains a major contributor to daily transaction volumes. However, elevated tax pressure may reduce trading frequency or shift volumes to overseas platforms.
These changes align with Indonesia’s broader financial oversight reforms, currently transferring crypto regulation from the commodities agency to the financial services authority. This transition seeks to harmonize Indonesia’s crypto policies with international standards. It also emphasizes data sovereignty, which recently led to the suspension of unauthorized crypto projects.
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USDT and Solana Under Increased Fiscal Pressure
Stablecoins like USDT and popular alternatives such as Solana are impacted by the crypto tax revision. These assets, frequently used for quick trades and remittances, now carry higher transaction tax rates of 0.21% and 1% for domestic and foreign exchange platforms. Additionally, crypto mining now faces a doubled VAT rate of 2.2%, further raising operational costs.
Mining profits will no longer benefit from a flat 0.1% income tax, as standard income and corporate tax rates will apply from 2026. This shift introduces fiscal uncertainty for domestic operators who now face complex compliance challenges. The government sees this move as essential to capturing a fair share of gains from crypto mining activity.
Solana’s growing use for DeFi and NFT transactions may also slow because of the updated tax regime. Local exchanges have called for fiscal incentives to counterbalance these changes. Without them, innovation and startup growth in the domestic crypto ecosystem could stall under heavy financial strain.
The crypto tax increase in Indonesia seeks to unify taxation and prevent offshore tax evasion, similar to regional policies in other countries such as Thailand and Vietnam. Local exchanges welcome the new regulation in a grace period, but warn that unequal treatment of crypto and traditional equities may suppress growth and innovation on the platforms.
