Indonesia’s crypto tax revenue grows exponentially due to increased crypto transactions within the state. With the crypto tax rules enforced on May 1, 2022, the blockchain industry contributed billions to the national economy. Data from the Directorate General of Taxes (DJP) disclose that tax revenue from the crypto industry is rising continuously from month to month. This achievement reflects the higher interest of Indonesian residents in digital assets.
Indonesia Generates $1.6 Billion from Crypto Taxes
On August 2, Indonesian business news media reported that the Ministry of Finance collected taxes worth Rupiah 798.84 billion, approximately $49 million, from crypto transactions between May and June 2024. This amount accounts for only 3% of the total tax collected in the country since 2022. The total revenue generated from taxes is Rp25.88 trillion (almost $1.59 billion) from all the crypto transactions executed from May 2022 to June 2024.
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In May 2022, the Indonesian government introduced a crypto tax bill in the state. Under regulation No. 68/PMK.03/2022, the proposed legislation put 0.1% income tax (PPh in Indonesia) on the seller’s transaction and 0.11% on the buyer’s transaction (valued-added-tax or PPN). Notably, the tax rule cited above implies on the trading of crypto assets registered with the Commodity of Future Trading Agency (Bappebti). While individuals have to pay double taxes for unregistered crypto trading: 0.2% for sellers and 0.22% for buyers.
The surge in tax revenue reveals Indonesian nationals’ strong interest in crypto trading and other digital asset services. DJP unveiled data on tax receipts in early 2024, with the first quarter collecting more than $6.9 million in taxes. Similarly, Bappebti reported that the total value of crypto transactions in the first half of 2024 soared 354% compared to the previous year’s first half. The recorded value of the first half of 2024 is Rp301 trillion, while in 2023, the recorded value was Rp66.44 trillion.
Tokocrypto Generates 50% of the Total Tax Income
Tokocrypto, Indonesia’s leading crypto exchange, claimed that the platform alone has generated 50% revenue of the total tax income made this year. While discussing the tax gains, the Chief Marketing Officer (CMO) of Tokocrypto Wan Iqbal noted in a statement:
The tax revenue from crypto transactions is evidence that this industry is increasingly accepted and rapidly growing in Indonesia. We will continue to support this growth with innovation and better services.
CMO further added that the exchange is committed to providing a compliant regulatory environment to its residents by the state’s legal authorities. With simple and clear regulations, the firm has witnessed enhanced interest from retail and institutional traders. He concluded that the platform aims to ensure a transparent and sustainable ecosystem for digital asset services in the state.
Moreover, Indonesia’s registered crypto asset customers hit a record number of 20.24 million in June 2024. The Statista Research Department states that this figure will reach 28 million by 2025.
Crypto tax revenue has contributed significantly to Indonesia’s total economy, revealing the digital asset industry’s potential to shape economies internationally. By embracing flexible and streamlined tax rules, financial authorities can substantially accelerate the growth of the digital landscape. Adapting to technological innovations and advancements will result in the development of the economic sector across the globe.
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