Indonesia Imposes Stricter Crypto Tax Regime Targeting Offshore Platforms

Indonesia's finance ministry unveiled a sweeping crypto tax overhaul set to take effect August 1, significantly increasing levies on offshore platforms while adjusting domestic rates. Foreign exchange transactions will face a 1% tax—a fivefold jump from the current 0.2%—while local platform rates rise from 0.1% to 0.21%.

The regulatory shift accompanies Indonesia's formal reclassification of digital assets as financial instruments under the Financial Services Authority (OJK). This MOVE targets the nation's $39.67 billion crypto economy, which saw $157.1 billion in inflows between July 2023 and June 2024—the highest in the Central & Southern Asia and Oceania region.

Notably, the reforms eliminate VAT for crypto buyers while raising mining VAT to 2.2%. Standard income tax rules will take effect in 2026. Market observers suggest the changes may disproportionately impact high-frequency traders and create compliance challenges for startups navigating the new framework.