Tax revenue from Indonesia’s burgeoning cryptocurrency industry has continued to climb, driven by a surge in crypto transactions.
Data from the Directorate General of Taxes (DJP) at the Ministry of Finance, total tax contributions from the sector was recorded at Rp798.84 billion (US$49 million) from May 2022 to June 2024. This figure accounts for 3 percent of the total tax collected from digital economic activities, which amounted to Rp25.88 trillion.
The rise in tax revenue from the cryptocurrency industry reflects strong interest from domestic investors. The DJP reported a rapid increase in crypto tax receipts in early 2024, with the first quarter alone seeing tax collections from crypto transactions totaling Rp112.93 billion.
Since May 1, 2022, the government has imposed taxes on crypto assets through Minister of Finance Regulation No. 68/PMK.03/2022. This regulation stipulates an income tax (PPh) rate of 0.1 percent on the transaction value for sellers of crypto assets and a value-added tax (PPN) rate of 0.11 percent on the transaction value for buyers of crypto assets.
For physical crypto asset traders not registered with the Commodity Futures Trading Regulatory Agency (Bappebti), the tax rates are higher at 0.2 percent for PPh and 0.22 percent for PPN.
The increase in tax revenue corresponds with a rise in crypto transactions from January to June. Bappebti reported that the total value of crypto transactions in Indonesia reached Rp301.75 trillion in the first half of this year, a 354.17 percent year-on-year increase compared to Rp66.44 trillion in the same period in 2023.
Additionally, the number of registered crypto asset customers reached 20.24 million by June 2024.
Tokocrypto, one of Indonesia’s largest crypto asset traders, claims that it has contributed to this tax revenue.
Wan Iqbal, CMO of Tokocrypto, said that nearly 50 percent of the total crypto tax collected comes from transactions on their platform.
“The transaction value on Tokocrypto based on daily trading volume throughout the first half of 2024 averaged over Rp23 million or approximately Rp374 billion per day. This is an 80 percent increase compared to the average trading volume last year,” Iqbal said.
Iqbal noted that Tokocrypto’s user base has grown to over 4.5 million, an increase of about 45 percent from the end of 2023.
“The tax revenue from crypto transactions is clear evidence that this industry is increasingly accepted and rapidly growing in Indonesia. We will continue to support this growth with innovation and better services,” he added.
Iqbal hopes that with the significant contribution from the crypto industry, Indonesia can further drive more inclusive and sustainable digital economic growth.
He also reiterated Tokocrypto’s commitment to supporting government efforts in regulating the crypto industry, ensuring compliance with all applicable regulations.
The significant growth in crypto tax revenue indicates the maturing digital asset market in Indonesia.
“With clearer and widely accepted regulations, we are seeing increased interest from both institutional and retail investors. This benefits not only the government but also creates a more sustainable and transparent ecosystem for the crypto business,” Iqbal concluded.
