Indonesia’s regulatory body for commodity futures trading, Bappebti, has reportedly requested the Ministry of Finance to review its stance on cryptocurrency taxation. Bappebti’s executive staff members have urged for a reassessment of the government-imposed value-added tax (VAT) of 0.11% and the 0.1% income tax on crypto transactions in Indonesia. Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti, explained that this request is driven by the expectation that crypto will become an essential component of Indonesia’s economy in the near future.
According to a recent local report, the revenue generated from crypto taxes in Indonesia amounted to approximately $2.49 million in January. The report highlighted that in January 2024, cryptocurrency taxes accounted for Rp39.13 billion in government revenue. Despite the existence of these crypto taxes for almost two years, Senjaya emphasized the need for an annual review, similar to other tax laws.
In April 2022, Indonesia introduced a 0.1% capital gains tax on crypto investments, along with a 0.11% VAT tax. Cointelegraph reported that this decision was made because crypto is considered a “commodity as defined by the Trade Ministry” rather than a currency.
In related news, Gibran Rakabuming Raka, the vice presidential candidate who ran alongside presidential candidate Prabowo Subianto, emerged as the winner of the presidential election with approximately 58% of the vote. Gibran has expressed his party’s intention to focus on creating opportunities for Indonesia’s younger population in the crypto and blockchain sectors.
Furthermore, the number of crypto holders in Indonesia has witnessed an 11% increase, rising from 11.2 million in 2021 to 12.4 million in 2023.
In other developments, the owner of the seven-trait CryptoPunk Seedphrase has partnered with Sotheby’s, a renowned auction house, in the field of non-fungible tokens (NFTs) collecting.
(Article rewritten for creative re-expression)