Indonesia's Crypto Tax Revenue Falls Despite Bitcoin's 159% Jump in 2023

Indonesia's Ministry of Finance has reported that the total tax revenue from cryptocurrency in 2023 was $31.7 million. However, the country's tax revenue fell by 62% last year compared to the partial collection period in 2022, when the tax regime was introduced. Crypto transactions in Indonesia are subject to dual taxation, which includes a 0.1% income tax and a 0.11% value-added tax, while local crypto exchanges must contribute around 0.04% tax to the national crypto bourse. Despite bitcoin's 159% increase in 2023, Indonesia's crypto tax revenue experienced a downturn, paralleling a 51% decrease in the country's crypto transaction volumes during the same period. Local exchanges have protested the high tax rates and suggested that crypto transactions should only be subject to income tax, not VAT.