Finance Ministry Plans New Crypto Tax Framework to Recognize It as Financial Instrument

JAKARTA, Investortrust.id — The Finance Ministry is preparing a strategic shift in its approach to taxing cryptocurrency in Indonesia, aiming to treat digital assets not just as tradeable commodities but as financial instruments.

This proposed change reflects the rapid evolution of crypto from mere exchange tokens to investment tools and derivatives. Tokocrypto, a leading Indonesian crypto exchange, welcomed the development, with CEO Calvin Kizana emphasizing that a more adaptive tax regime would boost legal certainty and support the country’s growing digital finance ecosystem.

According to Calvin, the move is timely, especially after the transfer of regulatory oversight for crypto assets from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK) earlier this year.

“The transition to OJK supervision signals a broader recognition of crypto as part of the financial system. It paves the way for more holistic regulation and sets the legal foundation to treat crypto as a financial instrument,” he said in a statement on Saturday.

From Commodity Tax to Financial Taxation

Until now, crypto transactions in Indonesia have been subject to Value-Added Tax (VAT) and Income Tax Article 22 under Ministry of Finance Regulation No. 63/PMK.03/2022, which classifies crypto as a digital commodity.

In the first quarter of 2025, crypto-related tax revenue reached Rp 1.21 trillion ($73.4 million), indicating growing public participation and trading activity.

However, reclassifying crypto as a financial instrument could open new tax avenues, particularly those aligned with the financial services sector. This may include taxation of structured crypto investments, digital asset portfolio management, and other financial services such as crypto derivatives.

“We fully support the Finance Ministry’s initiative to align tax regulation with crypto’s real-world applications,” Calvin said. “Classifying crypto as a financial instrument would provide clarity for both businesses and investors. It’s a crucial foundation for encouraging innovation in digital finance.”

Industry Seeks Tax Parity with Capital Markets

Calvin added that reworking the tax scheme to reflect crypto’s new classification could deliver strategic benefits, such as increasing retail and institutional investor interest and expanding trading volumes—provided the tax policy remains competitive.

“We’ve advised the Finance Ministry to consider aligning crypto transaction taxes with those applied in capital markets. Stock trades are subject to lighter final tax rates, and ideally, crypto should be treated similarly,” he said.

Such parity, he argued, would help level the playing field and enhance the competitiveness of Indonesia’s crypto industry amid tightening global competition.

He also stressed that fair and proportional regulation would improve the country’s business climate and support the long-term growth of the digital asset ecosystem.