TEMPO.CO, Jakarta - Executive Director of the Indonesian Blockchain Association and Cryptocurrency Traders Association, Asih Karnengsih, expressed concern over the high taxes on crypto transactions in the country.

She highlighted that the high taxes have had a significant impact on the crypto industry. “We have two concerns. It's true that taxes directly or indirectly affect the number of [crypto] transactions in Indonesia,” Asih said after the Crypto Exchange 101 Workshop at the Unika Atma Jaya Campus in Jakarta on Monday, January 29.

First, Asih expected tax rate adjustments. “The transaction fees that a trader or investor has to pay when conducting crypto transactions in Indonesia are very high,” she said.

Consequently, investors prefer to conduct transactions abroad where the fees are close to zero.

“Secondly, since [crypto] will later be considered by the OJK as a technological innovation in the financial sector and will become a part of financial instruments, it can be defined as a financial asset. This means there can be no VAT (Value Added Tax),” she added.

Asih explained that according to the Tax Harmonization Law, financial assets are not subject to VAT. She expressed hope that such actions would revive crypto transactions in the country. “When we make a loss, we sell it and pay taxes as well. This drops the excitement,” she said.

The tax on crypto asset transactions has been in place since May 2022, with VAT charged is 0.11 percent and income tax or PPh at 0.1 percent.

DEFARA DHANYA PARAMITHA

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