Indonesia’s annual cryptocurrency tax revenues reached between 500 billion rupiah (US$31.25 million) and 600 billion rupiah (US$36.40 million) every year, according to the Directorate General of Taxes.

The Directorate General of Taxes is part of Indonesia’s Ministry of Finance.

Authorities reported that in the first year of implementation in 2022, cryptocurrency tax revenue reached 246 billion rupiah (US$15 million), then dropped to 220 billion rupiah (US$13.42 million) in 2023, and rose significantly to 620 billion rupiah (US$37.98 million) in 2024.

As of 2025, the year-to-date collection stands at 115 billion rupiah (US$6.97 million).

Officials said that the volatility of cryptocurrency prices could cause fluctuations in tax revenues in the future.

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🔗 Source: Tirto.id

🧠 Food for thought

1️⃣ Crypto tax revenue surge reflects Indonesia’s booming digital asset market

The dramatic jump in Indonesia’s crypto tax collection from 220 billion rupiah in 2023 to 620 billion rupiah in 2024 reflects significant growth in market activity1.

This nearly threefold increase in tax revenue aligns with crypto transaction values reportedly tripling to 650 trillion rupiah in 2024, showing how government collections grow with market volume1.

Indonesia’s crypto user base has now surpassed 20 million people, exceeding the number of stock market investors and creating a notable tax base for the government1.

The government’s ability to capture this growing revenue stream positions crypto taxation as an increasingly important contributor to national finances, especially as many traders are young adults aged 18-30 who represent future long-term taxpayers1.

2️⃣ New tax structure aims to capture capital flight while protecting domestic exchanges

Indonesia’s August 2025 tax reforms create an incentive structure that favors domestic over foreign crypto exchanges.

The government increased taxes on overseas platforms from 0.2% to 1%, while domestic exchanges face a smaller increase from 0.1% to 0.21%2.

This tax differential appears intended to reduce capital outflows and redirect trading volume to Indonesia’s regulated domestic exchanges, potentially retaining more of the estimated $39.67 billion in annual crypto transactions within the local financial system1.

The elimination of VAT for crypto buyers further encourages domestic trading, while the government reclassified crypto assets from commodities to financial assets under Financial Services Authority oversight, signaling a shift toward treating crypto as part of the formal banking system1.

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