Indonesia’s Crypto Market Adapts as INDODAX Adjusts VAT Rates

INDODAX, Indonesia’s largest cryptocurrency exchange, has adjusted its Value Added Tax (VAT) rates. This change aligns with Indonesia’s updated tax policies, specifically PMK No. 131 of 2024 and PMK No. 81 of 2024, which govern VAT rates for crypto transactions.

The VAT rate for buying crypto assets through Crypto Asset Physical Traders (PFAK) is now 0.12%. This equals 1% of the transaction value multiplied by the 12% VAT rate. Other services, like deposit fees and trading costs, will incur an 11% VAT rate, per PMK No. 131 of 2024.

INDODAX CEO Oscar Darmawan expressed full support for the updated tax framework. He sees the VAT adjustment as a move toward greater tax transparency in Indonesia. He also highlighted that this change will improve transaction safety and convenience for users.

The Impact of VAT on Indonesia’s Crypto Market

While INDODAX supports the new VAT rates, Darmawan voiced concerns about their potential impact on Indonesia’s crypto market. He argued that crypto transactions should be exempt from VAT, like in other countries, to encourage wider adoption.

He believes this could make crypto a more inclusive financial tool in Indonesia. Additionally, removing VAT could boost trading volumes, leading to higher income tax revenue.

INDODAX Suffers Security Breach

In a related incident, INDODAX experienced a security breach that resulted in a $15.7 million loss. The company detected the breach after its monitoring systems identified unusual outflows of digital assets.

Read also: Indodax Hackers’ Portfolio Swells to $14.4M, $ETH Dominates

PeckShield, a blockchain security firm, alerted the public after discovering that 5,204 $ETH, worth millions of dollars, had moved to an unknown Ethereum address.

The attack also involved 6.8 million POL tokens on the Polygon network and 380 $ETH on the Optimism network.