Indonesia’s Ministry of Finance has introduced a sweeping update to its crypto taxation policy, significantly raising taxes on traders and miners, while offering some relief to crypto buyers. The new regulations, issued as Regulation No. 50/2025 and No. 53/2025, come into effect on August 1, 2025.

Higher Income Tax for Crypto Sellers

Under the updated rules, the income tax on crypto asset sales made on domestic exchanges has more than doubled, from 0.1% to 0.21%. Transactions conducted on foreign exchanges face even steeper taxation, with rates rising from 0.2% to 1%, according to Reuters. These moves are part of the government’s broader efforts to strengthen compliance and boost revenue from the rapidly growing crypto sector.

Crypto Miners Face Increased Tax Burden

The updated framework also targets crypto mining activities. The Value Added Tax (VAT) on crypto miners has been raised from 1.1% to 2.2%. Additionally, the special 0.1% income tax rate for miners will be discontinued in 2026. From then on, mining income will be taxed under the standard personal or corporate income tax regimes, depending on the operator’s status.

Miners classified as “retail trader taxable entrepreneurs” must comply with the new framework or face penalties under Indonesia’s general tax provisions law.

VAT Exemption for Crypto Buyers

In a notable shift, the Ministry has removed VAT obligations for crypto buyers. Previously, buyers had to pay VAT ranging from 0.11% to 0.22%, but this has now been scrapped to ease the tax burden and boost domestic participation in the crypto economy.

Transfers of crypto assets that are “equated to securities” will no longer be subject to VAT, as outlined in Regulation 50/2025. Regulation 53/2025 also eliminates related articles (343 and 354), finalising the exemption.

Government Justifies the Overhaul

Finance Minister Sri Mulyani Indrawati stated that the tax revisions are designed to provide legal clarity and align with evolving crypto trading practices. The government believes these changes will foster a more regulated and transparent crypto market while ensuring fair revenue generation from all participants.

Indonesia’s updated crypto tax rules raise levies on miners and sellers, especially those using foreign platforms, while eliminating VAT for buyers to promote fair and compliant trading. With effect from August 1, the changes reflect a shift toward stricter regulation without stifling adoption.