Crypto Industry Tax Revenue In Indonesia Skyrockets, What's The Reason?

Illustration of crypto assets (photo: Pixabay)

JAKARTA - The increasing number of crypto investors and crypto asset transactions in Indonesia, has also had a positive impact on total tax revenues in the country.

Based on the Directorate General of Taxes (DGT) of the Ministry of Finance, tax revenues from the crypto industry in Indonesia show a positive trend, with total tax payments reaching IDR 798.84 billion from May 2022 to June 2024.

The increase in tax revenue from the crypto industry shows high interest from domestic investors. In the first quarter of 2024 alone, DGT recorded that the total tax collected from crypto transactions reached IDR 112.93 billion.

"The significant growth in crypto tax revenues shows the maturity of the digital asset market in Indonesia," said CMO Tokocrypto Wan Iqbal in a written statement quoted Monday, August 5.

Iqbal also said that the existence of clear regulations related to the crypto industry is one of the reasons for increasing interest from institutional and retail investors.

"This not only benefits the government, but also creates a more sustainable and transparent ecosystem for the crypto business," he added.

Then continued Iqbal, the government must create a level playing field for all crypto trading platforms. Because according to him, it is time for foreign crypto companies to impose crypto taxes, in accordance with PMK 68 rules.

"This can create a healthier crypto industry, support local platforms to compete and avoid capital flow abroad," added Iqbal.

In addition, Iqbal considered that the recent government move such as blocking global media exchangeers could be investors to switch to local platforms that have been registered and supervised by CoFTRA. Thus, indirectly can increase transaction volume on local platforms.

"This gives a strong signal that the government is serious in enforcing regulations in the crypto sector, encouraging industry players to comply with applicable regulations," he explained.

According to Iqbal, the second semester will be attractive and full of potential for the global crypto market, including Indonesia. It is very likely that the price of Bitcoin can reach its new all-time high in the 4th Quarter of 2024.