Indonesia’s Commodity Futures Trading Regulatory Agency (known as Bappebti) assesses a tax on all cryptocurrency transactions made on regulated exchanges domestically.
There are currently 13 cryptocurrency exchanges under the supervision of Bappebti, and according to the Phnom Penh Post, the tax will automatically be imposed on these platforms if it is approved.
“It is currently undergoing an internal review in Papeete, and then we will coordinate with the BKF,” said Siddhartha Utama, president of Papeete, adding that the actual tax rate has not yet been determined. The term BKF stands for Indonesia Tax Policy Agency.
Regulatory activity has increased in Indonesia over the past six months as Bitcoin (BTC) and the broader cryptocurrency market rose to record highs. In December 2020, Babbiti issued a decree in which 229 cryptocurrencies were first recognized as legally tradable commodities, leaving traders with the opportunity to propose adding new coins to the list. In February, the agency identified 13 trading platforms recognized as licensed.
Indonesia initially warned against using cryptocurrencies as a payment method in 2014, and by 2017 passed a law requiring fintech companies to register with Bank Indonesia to ensure they do not use cryptocurrencies in payment systems.
The leader of the Indonesian Association of Asset Traders, Teguh Kurniawan, said the group he represents has proposed a 0.05% tax rate, adding that the high tax rate could push people into illegal channels when buying cryptocurrencies.
“So far there has been no comment on the type of tax. We want the tax rate not to be too high, [or] we fear that investors will invest in crypto [assets] through illegal channels, which could be harmful, ”said Cornuan.