Report: Indonesia Considering Alterations to Dual Taxation on Cryptocurrency

Indonesia’s regulatory agency for commodity futures trading, Bappebti, has reportedly asked the Ministry of Finance to review its stance on cryptocurrency taxation. According to a recent report, executives at Bappebti have requested a reassessment of the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction in Indonesia, as well as the 0.1% income tax on crypto. Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti, explained that this request is due to the increasing importance of crypto in Indonesia’s economy. The report also highlighted that the government collected approximately $2.49 million in crypto taxes in January. The report further stated that these crypto taxes, which have been in effect for almost two years, should undergo an annual review like other tax laws. In April 2022, Indonesia implemented a 0.1% capital gains tax and a 0.11% VAT tax on crypto investments. This decision was made because crypto is considered a commodity by the Trade Ministry, rather than a currency. In related news, Gibran Rakabuming Raka, the vice presidential candidate who ran alongside presidential candidate Prabowo Subianto, secured victory in the presidential election with approximately 58% of the vote. Gibran has expressed his party’s intention to focus on providing opportunities in the crypto and blockchain space for Indonesia’s younger population. The number of crypto holders in Indonesia has also seen a significant increase, rising from 11.2 million in 2021 to 12.4 million in 2023.