Crypto Tax Shake-Up: OJK and Ministry of Finance Eye New Regulations

JAKARTA, RAKYAT NEWS– The Financial Services Authority (OJK) is gearing up to implement new tax regulations for cryptocurrency transactions, signaling a shift in the oversight of digital assets in Indonesia.

According to Hasan Fawzi, Chief Executive for the Supervision of Financial Sector Technology Innovation, Digital Financial Assets, and Cryptocurrency at OJK, this initiative is part of a broader plan to transfer the regulatory authority for crypto assets from the Commodity Futures Trading Regulatory Agency (Bappebti) to the OJK, with the transition expected to be completed by early 2025.

“We at OJK are working closely with the Ministry of Finance to ensure the smooth implementation of this new crypto tax framework,” Fawzi stated in Jakarta on Thursday.

With the transition of oversight to the OJK, cryptocurrency assets are expected to be reclassified as digital financial assets, moving away from their current classification as commodities. This reclassification is anticipated to bring about changes in the tax structure for crypto transactions.

Currently, under Ministry of Finance Regulation No. 68 of 2022, cryptocurrency transactions conducted on Bappebti-registered platforms are subject to a value-added tax (VAT) of 0.11% of the transaction value. If the transaction takes place on an unregistered platform, the VAT rate increases to 0.22%.

In addition to VAT, cryptocurrency transactions are also subject to income tax (PPh), with rates set at 0.1% for registered platforms and 0.2% for unregistered ones.

Given the existing tax burden, Tirta Karma Senjaya, Head of the Bureau for the Development and Regulation of Commodity Futures Trading at Bappebti, has proposed a reduction in tax rates by half, to alleviate pressure on the industry.