Indonesia Explores Bitcoin as a National Reserve Asset, Despite Crypto Tax Hike

Indonesia is actively exploring the idea of adopting Bitcoin as a strategic reserve asset , a move that could mark a significant shift in the country’s approach to digital currencies. Representatives from Bitcoin Indonesia recently met with officials from the Vice President’s office to present a proposal outlining how Bitcoin could contribute to long-term economic growth. In a statement shared on X, Bitcoin Indonesia revealed that their presentation focused on leveraging Bitcoin mining as part of a national reserve strategy. “Yes, seriously. [The country] is looking into how Bitcoin could fuel long-term economic strength,” the group emphasized. Their pitch included potential uses of the country’s rich hydroelectric and geothermal resources to power Bitcoin mining, with the aim of driving job creation and technological advancement. Indonesia, home to over 280 million people and the world’s 16th largest economy, is uniquely positioned to explore such innovations. While the country has maintained a conservative stance on cryptocurrency payments, its openness to reserve diversification suggests a complex but evolving policy landscape. Bitcoin’s Role in Mining and Education During the presentation, Bitcoin Indonesia also discussed the broader implications of embracing Bitcoin, including education and public awareness. A notable highlight was the inclusion of a long-term price prediction by MicroStrategy co-founder Michael Saylor, who forecasts Bitcoin reaching $13 million by 2045 in a base scenario — and potentially as high as $49 million under bullish conditions. Bitcoin Indonesia emphasized the need for education initiatives to ensure widespread understanding and adoption, a point reportedly supported by Vice President Gibran Rakabuming Raka’s office. Though the country’s macroeconomic indicators, such as a relatively low debt-to-GDP ratio of 39% and stable inflation of 0.76% (as of January 2025), don’t present the same urgency as in other nations adopting Bitcoin for economic hedging, the proposal reflects growing interest in future-proofing economic reserves. Crypto Taxes Raised in Indonesia In contrast to the pro-Bitcoin reserve strategy, Indonesia’s Finance Ministry recently imposed higher taxes on cryptocurrency activities. Income tax on crypto sales more than doubled — from 0.1% to 0.21% for local exchanges, and from 0.2% to 1% for foreign platforms. Additionally, value-added tax on mining has also risen sharply from 1.1% to 2.2%. While the country has banned crypto payments since 2017, enforcement remains loose. In tourist-heavy areas like Bali, several businesses continue to accept Bitcoin, especially in real estate transactions. The post Indonesia Explores Bitcoin as a National Reserve Asset, Despite Crypto Tax Hike appeared first on TheCoinrise.com .