Evolution of Crypto Regulation in Indonesia

Once regarded merely as a speculative asset, crypto is now formally recognized alongside securities and placed under the direct supervision of the Financial Services Authority (OJK) and Bank Indonesia (BI). This marks a new chapter in the evolution of cryptocurrency (crypto) in Indonesia.

In simple terms, crypto is a digital asset that operates on blockchain technology, a decentralized ledger system not controlled by any single authority. Its volatile nature, with both high risk and high return potential, has attracted millions of investors worldwide, including in Indonesia.

The trajectory of crypto in Indonesia has undergone a significant transformation. Initially classified as a digital commodity under the supervision of the Commodity Futures Trading Regulatory Agency (Bappebti), crypto has now shifted to being recognized as a digital financial asset regulated by OJK and BI. This shift is more than just a change in terminology. It represents a paradigm shift that redefines how the government regulates, taxes, and safeguards Indonesia’s crypto ecosystem.

Crypto as Commodity

Since 2019, crypto has been officially recognized as a digital commodity through Bappebti Regulation No. 5 of 2019. The primary reason is that crypto is not considered a legal means of payment, in line with Law No. 7 of 2011 on Currency, which designates the Rupiah as the sole legal tender. Given its volatility and tradable nature, crypto was deemed more appropriate to be categorized as a tradable good, similar to gold or oil.

Within this framework, Bappebti enforced strict regulations, from licensing requirements for exchanges to consumer protection measures. On the taxation side, crypto transactions were subject to Value Added Tax (VAT) at rates ranging from 0.11% to 0.22%, depending on whether the trading platform was registered or not, and Article 22 Income Tax at a final rate of 0.1% for registered domestic platforms and 0.2% for foreign platforms. According to Kompasiana.com, this system posed challenges such as double taxation, which led some investors to switch to foreign platforms.

Regulatory Shift: Crypto Transforms into a Financial Asset

A major change began with Government Regulation No. 49 of 2024, effective January 10, 2025. This regulation officially transferred the supervision of crypto from Bappebti to OJK and BI. Signalling a message how the Indonesian Government no longer views crypto merely as tradable goods, perhaps as part of the broader digital financial ecosystem.

The transition was further reinforced by Minister of Finance Regulation No. 50 of 2025, effective August 1, 2025. Under this regulation, crypto is categorized as a digital financial asset, positioned on par with securities.

The most significant change lies in its tax scheme.

Whereas VAT on crypto trading is abolished, while VAT still applies to related services such as trading platform services and transaction verification services provided by miners.

Also has been updated, the new Article 22 Final Income Tax rate is 0.21% for transactions conducted through registered domestic platforms and 1% for transactions through foreign platforms.

The Future of Crypto in Indonesia

This regulatory transformation marks a new chapter for Indonesia’s crypto ecosystem. With more integrated oversight from OJK and BI, the government aims to foster a safer and more conducive investment climate. The reform also opens up greater opportunities for innovation and wider adoption of blockchain technology, which is expected to strengthen Indonesia’s position in the regional crypto industry. (Shintya)