Indonesia May Consider Changes In Cryptocurrency Taxation Amid Industry Concerns

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An official from Indonesia’s Commodity Futures Trading Supervisory Agency (Bappebti) has advocated for a reevaluation of the tax regulations governing digital assets in the country. Currently, cryptocurrencies are categorized as commodities in Indonesia, thereby subjecting them to value-added tax (VAT) and income tax obligations. However, as regulatory oversight of cryptocurrencies is set to transition to the country’s financial services regulator, OJK, by 2025, calls have intensified for a reassessment of these tax policies.

A Call for Reassessment

An official from Indonesia’s Commodity Futures Trading Supervisory Agency (Bappebti) has urged the
Finance Minister to reassess the tax rates applied to digital assets. At present, cryptocurrencies in
Indonesia are classified as commodities, making them subject to both value-added tax (VAT) and
income tax. However, with the impending transfer of cryptocurrency oversight to the country’s
financial services regulator, OJK, in 2025, there are growing calls for a review of these tax policies.


During a recent event, Tirta Karma Senjaya of Bappebti highlighted the need for a reevaluation of the
tax framework governing digital assets. He emphasized that the cryptocurrency industry is still in its
nascent stages and requires conducive conditions for growth before it can make a substantial
contribution to national revenue through taxes. Senjaya pointed out that it has been more than a year
since the current tax regulations were put in place, and it’s customary for such policies to undergo
annual reviews.

Indonesia to decrease tax burden on crypto

The existing tax regime has faced criticism from stakeholders within the cryptocurrency sector.
Indonesian crypto exchanges have observed a significant 60% decrease in trading volumes compared
to the previous year, citing the heavy tax burden as a potential factor driving users towards foreign
exchanges.

Although Bappebti has not outlined specific changes it seeks from the Finance Ministry, there is
speculation that the agency may advocate for the elimination of VAT on cryptocurrencies. This move
would bring the tax treatment of digital assets closer to that of stocks. The speculation arises amidst
anticipation of regulatory changes with crypto oversight transitioning to OJK, potentially leading to
cryptocurrencies being regarded as securities in Indonesia.


The Ministry of Finance, represented by spokesperson Dwi Astuti, has indicated openness to
considering feedback from Bappebti and the public on this issue. Astuti confirmed that discussions on
the taxation of digital assets will take place internally, hinting at a potential shift in Indonesia’s
approach to cryptocurrency taxation in preparation for forthcoming regulatory adjustments in the
sector.

Author: Candace

Candace loves the arts. She holds some bitcoins.