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Bappebti wants crypto taxes slashed as market heats up
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Representations of virtual currency Bitcoin are seen in this illustration picture taken on March 13, 2020. (REUTERS/Dado Ruvic)
T
he Commodity Futures Trading Regulatory Agency (Bappebti) has proposed slashing the tax burden imposed on crypto traders in the country with the goal of attracting more investors to the Indonesian crypto market.
"Indeed, it's necessary to conduct a reevaluation and reconsideration of the tax imposition. The hope is that crypto investors will be subject to just half of the total taxes [currently] imposed," Tirta Karma Senjaya, head of commodity futures trading development and supervision at Bappebti, said on Saturday, as reported by CNN Indonesia.
According to Tirta, changes were needed to maintain the growth of the domestic crypto asset market, which has expanded over the last couple of years. Government data show that the country had 18.26 million crypto asset investors as of November 2023.
Read also: RI homemakers hope crypto, forex trading will bolster family finances
Tirta suggested that all stakeholders, including Bappebti, the Financial Services Authority (OJK), the Finance Ministry’s Taxation Directorate General as well as industry players and associations, be involved in the planning of crypto asset taxation.
The Bappebti official revealed that crypto transactions accounted for more than 50 percent of the fintech industry's income and yielded Rp 259 billion (US$16.46 million) in tax revenue for the state budget.
The taxes, he said, needed the adjustment to prevent industry players from trading in foreign markets instead. Tirta warned that if not, it “could affect the competitiveness of crypto exchanges in the country," as quoted by news agency Antara.
