Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) is reportedly urging the Ministry of Finance to reconsider the existing tax rules governing cryptocurrency transactions. This call for review stems from Bappebti’s expectation of crypto’s expanding role in the nation’s future economy.

Bappebti officials, led by Tirta Karma Senjaya, head of the Bureau of Market Development and Development, contend that the current 0.11% value-added tax (VAT) and 0.1% income tax imposed on crypto transactions need reevaluation. Their argument revolves around the increasing incorporation of crypto into Indonesia’s financial framework.

Despite the tax framework being in effect since April 2022 and generating approximately $2.49 million in January 2024 alone, Senjaya underscores the importance of periodic assessments, aligning crypto taxation with the standard practice for other tax regulations.

This development coincides with a period of notable growth in Indonesia’s crypto sector. The number of crypto holders has surged by over 11% from 2021 to 2023, indicating a rising public interest. Furthermore, the recent presidential election victory of Prabowo Subianto, whose running mate, Gibran Rakabuming Raka, has voiced support for nurturing opportunities in the crypto and blockchain realm for Indonesia’s younger generation.