Indonesia Hikes Taxes on Crypto Exchanges and Miners

Indonesia’s Finance Ministry has enacted sweeping changes to its crypto tax regime, raising income taxes for miners and sellers while removing value-added tax (VAT) obligations for buyers.

The new rules, outlined in Ministerial Regulations No. 50/2025 and 53/2025, take effect on August 1, 2025.

According to a Reuters report, the new framework has increased income tax rate on crypto assets sales conducted through local exchanges from 0.1% to 0.21%.

Notably, the new taxes is hiking up the taxation for foreign exchange sales significantly, up from the current 0.2% to 1%.

In addition to the rise in income tax, the new taxation framework would also be raising the VAT for crypto miners from 1.1% to 2.2%.

The government has also removed the 0.1% special income tax rate for crypto mining, meaning that starting in 2026, mining income will be subjected to standard personal or corporate income tax rates.

While there has been an overall increase in the taxation of crypto miners and sellers, the ministry has provided exemption for some....

VAT Exemption for Crypto Buyers

It seems that crypto buyers might be the only party who would be benefitting from the new regulation, with the new rule stating that the transfer of crypto assets that are equated to securities will be completely exempted from the VAT.

Under the previous rules, buyers were reportedly required to pay a VAT of 0.11%-0.22%.

According to Finance Minister Sri Mulyani Indrawati, the regulatory overhaul is designed to provide clearer legal certainty and reflect the rapid evolution of Indonesia’s crypto trading sector.

The reforms seek to ensure effective tax collection and strengthen compliance as digital asset adoption grows nationwide.