Heaptalk, Jakarta — Tax revenue from Indonesia’s crypto industry shows a positive trend. The Directorate General of Taxes (DJP) data at the Finance Ministry revealed that total crypto tax revenue reached US$49.2 million, equal to Rp798 billion, from May 2022 to June 2024. This outcome represents a 3% contribution to the total tax collected from digital economic activities, which amounts to US$1.5 billion or nearly Rp25.8 trillion.
The rise in tax revenue from the crypto industry indicates high interest from domestic investors, demonstrated by Indonesia’s consistently increasing crypto tax receipts since the beginning of 2024. In the first quarter of 2024, DJP recorded total tax collected from crypto transactions amounting to US$6.9 million (around Rp112.93 billion).
The tax revenue growth coincides with the increase in crypto transactions from January to June. The Commodity Futures Trading Regulatory Agency (CoFTRA) reported that the total value of crypto transactions in Indonesia reached US$18.6 billion (around Rp301.75 trillion) in the first half of this year, marking a 354.17% YoY increase compared to the same period in 2023, which reached US$44 billion. Meanwhile, the number of registered crypto asset customers until June 2024 reached 20.24 million.
In May 2022, the government imposed taxes on crypto assets through the Minister of Finance Regulation (PMK) of the Republic of Indonesia Number 68/PMK.03/2022. This regulation governs Income Tax (PPh) and Value-Added Tax (VAT) for crypto asset trading transactions, with an Income Tax rate of 0.1% of the transaction value for crypto asset sellers and a Value-Added Tax rate of 0.11% of the transaction value for crypto asset purchases. For physical crypto asset traders not registered with CoFTRA, the tax rate is higher, with an Income Tax rate of 0.2% and a Value-Added Tax rate of 0.22%.
To maintain the enhancement’s stability, Wan Iqbal, CMO of Tokocrypto, suggested that the government create a level playing field for all crypto trading platforms. Following PMK 68 regulations, he observed that foreign crypto companies must be enforced to crypto tax. He believes the attempt can create a healthier crypto industry, support local platforms’ competition, and prevent capital flow abroad.
“The implementation of blocking global social media exchangers can encourage investors to switch to local platforms registered and supervised by Bappebti, indirectly increasing transaction volumes on local platforms. This strongly signals that the government is serious about enforcing regulations in the crypto sector, encouraging industry players to comply with the applicable regulations,” he explained.
According to Iqbal, the second half of the year will be interesting and full of potential for the global crypto market, including Indonesia. He also predicted that Bitcoin prices could likely reach a new all-time high in the fourth quarter of 2024.
