TechFlow news, according to CoinDesk, in 2023 Indonesia's cryptocurrency exchange trading volume dropped by 60% compared to the previous year, partly due to the country's high tax policies. In Indonesia, crypto assets are classified as commodities and are subject to both income tax and value-added tax (VAT). Local exchanges hope that reclassifying cryptocurrencies as securities could alleviate some of the tax burdens and bring users back.
Major exchanges stated that the total tax per transaction could exceed the trading fees charged by the platforms, placing greater financial pressure on traders. For instance, Oscar Darmawan, CEO of INDODAX cryptocurrency exchange, noted that crypto users must pay 0.1% income tax and 0.11% VAT on each transaction. Exchanges are also required to pay a 0.04% national crypto exchange fee.
It is reported that the Indonesia Financial Services Authority (OJK) is expected to take over cryptocurrency regulation in January 2025, at which point the VAT may be eliminated and cryptocurrencies could be reclassified as securities.
