Indonesia has reported a significant surge in crypto transactions, reaching a total value of Indonesian Rupiah 30 trillion ($1.92 billion) in February, according to the country’s crypto regulator.
The Commodity Futures Trading Supervisory Agency (Bappebti) revealed that the number of registered crypto investors in the country also experienced a notable increase, reaching 19 million last month. This marks an addition of 170,000 users compared to January.
Bappebti attributes this remarkable growth to positive market sentiments driven by the surge in bitcoin’s (BTC) price and the rally in altcoins, which are tokens other than bitcoin.
Despite the challenges posed by the downward trend in 2022 and 2023, Bappebti remains optimistic about surpassing the transaction volume from the last bull run in 2021, which amounted to $51.28 billion. Tirta Karma Senjaya, representing Bappebti, highlighted that a rebound in 2024 was anticipated, with the upcoming bitcoin halving expected to serve as a significant catalyst.
However, achieving the crypto transaction target may require a reevaluation of the current tax regime. Presently, crypto transactions incur taxes at a rate of 0.10% for Income Tax and 0.11% for Value Added Tax (VAT) on users, while exchanges are taxed at 0.02% per transaction for the crypto bourse, depository, and clearing house.
Tirta emphasized the importance of considering the industry’s early stage of development, suggesting that imposing heavy taxes could potentially stifle its growth. This sentiment was echoed at a Reku exchange event earlier, where Tirta expressed concerns about the impact of excessive taxation on the industry.
Looking ahead, the transfer of crypto oversight to the Financial Services Authority (OJK) in January 2025 could herald significant changes. There is speculation that this transition may lead to a reclassification of crypto assets as securities and a revision of VAT policies, potentially reshaping the regulatory landscape for the industry.
