• The Indonesian crypto regulator is calling on the government to reconsider taxation of the sector.
  • Cryptocurrencies are currently taxed as commodities in the country, but this classification could change when OJK takes over oversight of financial services next year.

A senior official from Indonesia’s crypto regulator Commodity Futures Trading Supervisory Agency, (Bappebti), called on the Finance Ministry to reconsider tax rates for digital asset.

In Southeast Asia, crypto is taxed as a commodity and therefore is subject to income tax and value-added taxes (VAT). This is expected to change in 2025, when the crypto sector will be overseen by OJK (the country’s financial services regulator).

The Tax Director General should review the taxes as crypto is expected in the financial sector to be a part of the industry by January 2025. Tirta Senjaya, from Bappebti, said that it’s been more than a year since the rules were implemented. Taxes are usually checked each year.

Tirta said the digital assets industry was still in its infancy, and needed space to grow before it could make significant contributions to national revenues.

The industry has called existing taxes burdensome to users and service providers. Indonesian crypto exchanges blamed a dramatic 60% decline in trading volume last year compared to 2022, they blamed taxes. They fear that this could drive users to foreign exchanges.

Dwi Astonti, the spokesperson for the Ministry of Finance said on , Wednesday, that they “welcomed input from Bappebti or the public,” and that “the issue of taxes will certainly be discussed internal.”

Sandali Handagama is the editor.