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Indonesian Ministry of Finance urged to review crypto tax policy
Indonesian Ministry of Finance urged to review crypto tax policy
The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) is would have request the Ministry of Finance to reassess the current tax regime for cryptocurrency transactions. The request comes as the agency expects crypto to play a larger role in the country’s future economy.
Bappebti officials, led by Tirta Karma Senjaya, head of the Market Development and Development Office, say the value added tax (VAT) of 0.11 percent and income tax of 0.1 percent imposed on crypto transactions need to be reassessed. Their reasoning centers on the growing integration of crypto into the Indonesian financial landscape.
While the current tax structure has been in place since April 2022, generating approximately $2.49 million in January 2024 alone, Senjaya highlights the need for annual reviews, aligning crypto taxes with the standard practice of other tax regulations.
The move comes amid a period of significant growth in the Indonesian crypto space. The number of cryptocurrency holders increased by more than 11% between 2021 and 2023, reflecting growing public interest. Additionally, the recent victory of Prabowo Subianto in the presidential election, whose running mate, Gibran Rakabuming Raka, has expressed support for promoting opportunities in the crypto and blockchain space for Indonesia’s young population.