What happened?
Indonesia’s crypto tax revenue saw a significant increase in 2024, reaching 620 billion rupiah—an impressive 181% jump from the previous year. This rise is attributed to a surge in local crypto activity, with transaction volumes hitting 650 trillion rupiah. However, early figures for 2025 indicate a slump in tax collections due to market volatility.
Who does this affect?
The changes primarily impact Indonesian crypto investors and traders, as well as the platforms they use. Over 20 million Indonesians are involved in crypto, surpassing the number of stock market investors, and predominantly consisting of young people aged 18 to 30. Additionally, international exchanges face stiffer taxes, while local platforms have seen milder increases.
Why does this matter?
The shifts in Indonesia’s crypto tax landscape highlight the government’s intent to harness digital asset markets for revenue, despite the volatility. These actions can influence market dynamics, potentially diverting traders to local exchanges due to tax incentives and affecting overall investor decisions. The increasing oversight might also attract more formalized investment, driving further market growth.