Indonesia’s regulatory agency for commodity futures trading, Bappebti, has reportedly requested the Ministry of Finance to reevaluate its stance on cryptocurrency taxation. According to a recent report, Bappebti’s executive staff members have raised concerns about the government-imposed value-added tax (VAT) of 0.11% on each crypto transaction and the 0.1% income tax on cryptocurrency. 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 play a crucial role in Indonesia’s economy in the near future.
The report also highlighted that the Indonesian government collected approximately $2.49 million in revenue from crypto taxes in January. It stated, “In January 2024, the revenue from cryptocurrency taxes reached Rp39.13 billion.” Despite these taxes being in effect for almost two years, Senjaya emphasized the need for an annual review, similar to other tax laws. The report stated, “The evaluation is necessary because this regulation has been in place for more than a year. Typically, taxes undergo evaluation annually.”
In April 2022, Indonesia implemented a 0.1% capital gains tax and a 0.11% VAT tax on crypto investments, as it considers crypto a commodity rather than a currency. Cointelegraph previously reported on this decision, explaining that the Trade Ministry defines crypto as a commodity.
In other news, Gibran Rakabuming Raka, the vice presidential candidate running alongside presidential candidate Prabowo Subianto, won the presidential election with approximately 58% of the vote. Gibran recently expressed his party’s intention to focus on providing opportunities in the crypto and blockchain space for Indonesia’s younger population.
Furthermore, the number of crypto holders in Indonesia has increased by over 11%, rising from 11.2 million in 2021 to 12.4 million in 2023.
In a separate development, the owner of a seven-trait CryptoPunk Seedphrase has partnered with Sotheby’s, a renowned auction house, as an NFT collector.