Foreign Crypto Tax in Indonesia: New 2025 Rules and Their Impact

Bittime - Digital asset regulations in Indonesia are becoming stricter. The government, through the Ministry of Finance, has established new rules that will take effect starting 2020.August 1, 2025, where crypto transactions at foreign exchange charged Final income tax of 1%from the transaction value.

This change aims to increase state revenue, reduce the potential for tax evasion, and encourage the use of local exchanges.

This article will discuss the background of the regulations, the impact on investors, and practical strategies to consider.

Foreign Crypto Taxes: What's Changed?

Before August 2025, crypto transactions will be subject toPPN (0,11%) And PPh final (0,1%)for transactions through local exchanges.

However, the latest rules remove VAT on crypto sales and replace it with a new scheme:

• 0,21%Final income tax for transactions via domestic exchange.
• 1%Final income tax for transactions via foreign exchange.

This difference in rates reflects a regulatory push to encourage investors to stick with domestically regulated exchanges.

Foreign exchanges are required to appoint representatives in Indonesia to collect taxes, and if they do not, potential access blocking may be imposed.

Read Also: OJK Issues Crypto Asset Trading Regulations

Impact on Indonesian Investors

1. Transaction costs increase
   At a rate of 1%, taxes on transactions on foreign exchanges are significantly higher than on domestic exchanges. Investors must factor this cost into their trading strategy.
   
    
2. The attractiveness of local exchanges is increasing
   The difference in rates could be an incentive for investors to switch to more competitive domestic exchanges.
   
    
3. Compliance risks
   Investors who continue to use offshore exchanges without tax deductions risk being penalized if tax authorities discover non-compliance.
   
    
4. Limited diversification
   Some DeFi tokens or services that are only available overseas may become more expensive for Indonesian investors to access.

Market Perspective & Global Comparison

Indonesia's crypto tax policy aligns with a global trend where many countries are emphasizing transparency in cross-border transactions. 

The European Union, for example, is developing a regulatory framework.Micato strengthen compliance, while the US tightens tax reporting for international exchanges.

With this step, Indonesia confirms its position as one of the countries with proactive crypto regulations.

Read Also: What is Tax Amnesty? Will There Be a Third Version in the Purbaya Era?

Investor Strategies for Facing New Taxes

1. Recalculate trading strategy: ensure the profit margin remains positive after deducting 1% tax.
   
    
2. Consider migrating to a local exchange: with lower rates (0.21%), the domestic exchange can be more efficient.
   
    
3. Use DeFi with caution: although difficult to monitor, DeFi transactions remain at risk if authorities expand the scope of taxation.
   
    
4. Tax consultation: for large investors, it is important to ensure compliance to avoid future penalties.

Impact on Crypto Asset Prices

While this tax rule does not directly change the tokenomics of specific crypto projects, its impact could be felt on:

• Trading volume: transactions on foreign exchanges have the potential to decline due to high tax burdens, thus affecting global liquidity.
  
   
• The price of crypto assets in the country: price spreads between local and foreign exchanges may increase, creating arbitrage opportunities.
  
   
• Market sentiment: retail investors may reduce trading frequency, while institutions may shift volume to domestic exchanges.

Crypto Market Prediction

In the short term, the 1% tax rule may suppress activity on foreign exchanges, but the impact on the global prices of Bitcoin, Ethereum, and altcoins is likely to be limited due to the international nature of the crypto market.

However, for more niche tokens that are only available abroad, prices in the domestic market can spike due to more expensive access.

Read Also: This is the Risk of Hyperinflation from Finance Minister Purbaya's 200T Policy

Conclusion

New tax rules for offshore crypto transactions in Indonesia mark an important step in digital asset regulation.

With rates1% for overseas exchanges And 0.21% for local exchanges, investors are faced with a strategic choice: stay on global exchanges with higher costs, or take advantage of a more tax-friendly domestic ecosystem.

Adapting strategies and compliance are key to ensuring crypto investment activities remain safe and efficient in this new regulatory era.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

What will be the crypto tax on foreign exchanges starting August 2025?

Every crypto transaction on an overseas exchange is charged PPh final 1%from the transaction value.

Why are foreign tax rates higher than domestic?

To encourage the use of local exchanges (0.21%) supervised by authorities, while increasing state revenue from cross-border transactions.

Does VAT still apply to crypto?

No. As of August 1, 2025, VAT on crypto sales will be removed and replaced with a final income tax scheme.

How to ensure compliance?

Investors should use exchanges that officially operate in Indonesia, or ensure that the foreign exchanges where they trade have appointed tax collection representatives.

Does this rule affect the price of Bitcoin or Ethereum?

Globally, the impact is small. However, in Indonesia, price differences (spreads) can arise due to differences in liquidity between local and foreign exchanges.