5 Impacts of Indonesia Raising Overseas Crypto Tax 4-Fold, What Does it Mean for Investors?

Jakarta, Pintu News – The Indonesian government has officially raised taxes on crypto transactions, particularly for trading on overseas exchanges, starting August 2025. This is the largest tax reform for the cryptocurrency sector in Indonesia and has immediately caught the attention of the investor community. What are the details of this latest policy, and how will it impact the national crypto market?

1. Overseas Crypto Exchange Tax Rises to 1%

Under the new regulations, sellers of crypto assets on overseas exchanges will now have to pay a tax of 1% of the transaction value, up sharply from the previous 0.2%. This increase means that the tax has quadrupled compared to the old rules.

Meanwhile, for transactions on domestic exchanges, the seller tax rose from 0.1% to 0.21%. This increase is also significant, although not as large as the tax for overseas transactions.

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2. Local Investors Benefit, Local Exchanges More Competitive

With the increase in foreign transaction taxes, Indonesia’s local crypto exchanges automatically become more competitive in the eyes of domestic investors. Now that the tax difference between local and offshore transactions is greater, investors tend to prefer domestically licensed platforms.

This is expected to increase transaction volume and liquidity on local exchanges and strengthen the national crypto ecosystem.

3. Buyers No Longer Subject to VAT

The interesting side of this new rule is that crypto asset buyers are no longer subject to Value Added Tax (VAT) on crypto transactions, unlike the previous rule. This policy is welcomed as it reduces the burden of transaction costs for Indonesian crypto traders.

The government’s main focus now is to optimize revenue from the seller side and the exchange, as well as suppressing transaction outflows to overseas platforms.

4. Effects to the Crypto Market: Potential Decline in Capital Outflows

With much higher foreign taxes, the potential for capital outflows to foreign exchanges could be reduced. This means that Indonesian investors’ funds are more “locked” in the local ecosystem, supporting the growth of the national crypto industry in the long run.

However, the tax hike could also squeeze the profitability of active and arbitrage traders who are used to capitalizing on price differences in overseas exchanges.

5. Investor and Exchange Responses

While some investors fear that the tax hike could reduce global competitiveness, others see it as an important step to promote regulation and consumer protection in Indonesia’s crypto market.

The domestic bourse also welcomes this regulation because it increases opportunities for business growth in the country.

Conclusion

The increase in crypto taxes in Indonesia, particularly for offshore transactions, is a strong signal of the government’s interest in regulating and optimizing the potential of the cryptocurrency market. For investors, it is important to pay attention to the fee structure and potential changes to trading strategies going forward.

Also Read: 7 Facts How Ethereum Changed the World of Crypto & Cryptocurrency Over 10 Years!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Reuters. Indonesia to raise tax rate on crypto transactions. Accessed July 31, 2025.
• CoinDesk. Indonesia to Raise Taxes on Crypto Transactions: Reuters. Accessed July 31, 2025.
• The Block. Indonesia to hike crypto transaction taxes starting August. Accessed July 31, 2025.