From Nasdaq:

In 2023, Indonesia’s crypto exchanges saw a 60% drop in transaction volume compared to the previous year. This was partly due to high income and VAT taxes, which apply to crypto as commodities, with users paying 0.1% income tax and 0.11% VAT on transactions, which can exceed exchange fees.

Local exchanges hope that recasting crypto as securities will eliminate some tax burden and bring users back. The transfer of crypto oversight to the Financial Services Authority (OJK) in January 2025 is expected, which may result in the removal of VAT tax and the classification of crypto as securities.

Top exchanges in Indonesia agree that once oversight shifts to the OJK and crypto is classified as securities, the VAT tax could potentially be removed. Until then, it is unclear how local exchanges will weather further drops in volume.



Read more: Indonesian Crypto Exchanges Blame Dramatic Drop in Trading Volumes Partly on High Taxes