Indonesia saw a notable 62% decline in its cryptocurrency tax earnings in 2023, despite Bitcoin's significant surge in value. Throughout the year, cryptocurrency transactions contributed a total tax revenue of $31.7 million. The decrease is attributed to a 51% drop in the overall volume of cryptocurrency transactions.

In May 2022, the Indonesian government introduced a dual tax structure for cryptocurrency transactions, imposing a combined rate of 0.11% (0.1% income tax and value-added tax). Additionally, local exchanges contributed approximately 0.04% to the national cryptocurrency exchange.

The Commodity Futures Trading Supervisory Agency (Bappebti), under Sri Mulyani's leadership, has initiated discussions with the Ministry of Finance regarding the assessment of cryptocurrency taxation. Tirta Karma Senjaya, head of the Market Development and Development Bureau at CoFTRA, stressed the importance of regular tax evaluations due to the dynamic nature of cryptocurrencies.

At an Indodax event in Jakarta marking its tenth anniversary, stakeholders highlighted the need for periodic reassessment of the tax system amidst evolving cryptocurrency regulations. Tirta emphasized the necessity for regular tax assessments to streamline the taxation process.

In January, Suryo Utomo, Director General of Taxes at the Indonesian Ministry of Finance, revealed that a total of IDR 71.7 billion had been collected from fintech service providers and cryptocurrency taxation. Crypto taxes accounted for IDR 39.13 billion, while fintech taxes contributed IDR 32.59 billion. The combined state revenue from crypto and fintech taxation in 2023 amounted to IDR 1.11 trillion.

Local exchanges have expressed concerns about increased taxation impacting their revenues. To foster growth and stability in Indonesia's cryptocurrency sector, they suggest limiting crypto taxation to income tax. Employing crypto tax calculators can aid taxpayers in accurately determining their liabilities and ensuring compliance with regulations.