Indonesia To Introduce 0.1% Crypto VAT, Income Tax Next Month

Indonesia will begin taxing crypto transactions by May 1, charging 0.1% on both VAT and income tax

article-image

Indonesia’s capital, Jakarta | Source: Shutterstock

share
  • The move is in line with the nation’s tax reforms last year following its economic recovery from the Covid-19 pandemic
  • Cryptocurrency trading in Indonesia will be subject to a 0.1% VAT and income tax on transactions, beginning next month

Indonesia will begin taxing crypto transactions by way of a value-added tax (VAT) and an income tax next month in a move that could net the government additional revenue from domestic trading activity.

According to a report by Reuters on Friday, the archipelago, which is made up of more than 17,000 islands, will begin charging 0.1% on both VAT and income tax by May 1.

“Crypto-assets will be subject to VAT because they are a commodity as defined by the trade ministry,” tax official Hestu Yoga Saksama told a media conference last week. “They are not a currency…so we will impose income tax and VAT.”

VAT is a form of taxation applied to goods and services at every step along the supply chain or sale to end consumers. Indonesia’s rate of 0.1% is significantly lower than the 11% it charges for other products. By comparison, Australia levies a rate of 10% while the US has a sales tax set at the state level ranging from 0% to 11.5%.

The move follows the country’s wide-ranging tax reforms last year — amid the nation’s economic recovery from the Covid-19 pandemic — which included provisions to tax profits on crypto trading activity.

Indonesia’s government is still working on the implementation of those regulations, Saksama said, as cited in the report.

Like other Asian nations within the region, including Thailand and Vietnam, Indonesia has outlawed crypto for use in payments, though its citizens are allowed to trade them as a commodity.

Indonesia is Southeast Asia’s largest economy, according to data by The World Bank. The nation is also the world’s fourth-largest largest, with a population exceeding 273 million people across 300 ethnic groups.

It is estimated that more than 2.6%, or 7.2 million Indonesians, currently own some form of crypto, data by payments provider Triple A shows.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

Partnership deal centers USDC inside safe’s smart-account stack, tightening rails from onboarding to treasury and DeFi access

article-image

Partnership enables S&P’s stablecoin stability data to flow directly into DeFi systems via Chainlink

by Blockworks /
article-image

Industry executives weigh in on last week’s “stress test” and the importance of stablecoins

article-image

Eigen Labs’ J.T. Rose pitched verifiable off-chain compute with agentic AI coming to Ethereum

article-image

The block appears to have been ongoing for over eight months

article-image

Coinbase and Mastercard’s BVNK bids illustrate how hot the stablecoin acquisition space has become