The Ministry of Finance in Indonesia has revealed that the country's tax revenue from cryptocurrency transactions in 2023 stood at$31.7 million, marking a steep 62% decline compared to the partial collection period in 2022 when the tax regime was introduced in May.

Crypto transactions in Indonesia are under the dual taxation, including a 0.1% income tax and a 0.11% value-added tax (VAT), imposing a significant burden on users. Additionally, local crypto exchanges are required to contribute around 0.04% of their revenue to the national crypto stock market. Despite the overall growth of the cryptocurrency market, Indonesia's crypto tax revenue experienced a downturn primarily due to a notable 51% decrease in crypto transaction volumes during 2023 compared to the previous year.

Local exchanges are also unsatisfied with the high tax rates and believe they are responsible for resulting in thinner revenues, as users seek out alternative platforms. The suggestions made by local exchanges, particularly the proposal to subject crypto transactions solely to income tax, underscore the need to foster growth and stability in the Indonesian cryptocurrency market.