Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) is reportedly asking the Ministry of Finance to re-evaluate the current tax regime for cryptocurrency transactions. This request comes as the agency anticipates crypto to play a more significant role in the nation’s future economy.

Bappebti officials, led by Tirta Karma Senjaya, head of the Bureau of Market Development and Development, argue that the 0.11% value-added tax (VAT) and 0.1% income tax imposed on crypto transactions require reassessment. Their reasoning centers around the growing integration of crypto into Indonesia’s financial landscape.

While the current tax structure has been in place since April 2022, generating approximately $2.49 million in January 2024 alone, Senjaya emphasizes the need for annual reviews, aligning crypto taxes with the standard practice for other tax regulations.

This move comes amidst a period of significant growth in the Indonesian crypto space. The number of crypto holders has risen by over 11% from 2021 to 2023, showcasing increasing public interest. Additionally, the recent presidential election victory of Prabowo Subianto, whose running mate, Gibran Rakabuming Raka, has expressed support for fostering opportunities in the crypto and blockchain space for the younger population in Indonesia.