The Indonesian government is seriously evaluating the inclusion of Bitcoin in its treasury, while Bitcoin Indonesia emphasizes the strategy of reserve assets and the potential for clean energy mining.

According to local organization Bitcoin Indonesia, the Indonesian government is seriously considering including Bitcoin in its national reserve assets. During discussions at the office of the vice president of the organization, it was suggested to utilize Indonesia's abundant geothermal and hydroelectric resources to drive Bitcoin mining, thereby building strategic reserves and promoting employment. The special advisor to the vice president acknowledged the importance of Bitcoin education, stating that "Indonesia must continue to popularize Bitcoin knowledge." Although the country's debt/GDP ratio is only 39% and inflation is well-controlled (0.76%), the 280 million population dividend and the $1.4 trillion economic scale make its exploration strategically significant. This coincides with MEXC Ventures strategically investing in the Indonesian exchange Triv at a $200 million valuation, while the country's crypto tax reform just came into effect on August 1, doubling the domestic trading tax rate to 0.21%.

Vice Presidential Office Confidential Talks: Bitcoin May Become a National Economic Strategic Tool

According to Bitcoin Indonesia, a local organization in Indonesia, the government is weighing the feasibility of using Bitcoin as a reserve asset. The organization stated on social media platform X on Monday that it was invited to explain to officials from the vice president's office how Bitcoin could contribute to the country's long-term financial stability and proposed using Bitcoin mining as a tool to build national reserves—a concept rarely discussed at the government level.

"Yes, this is a serious assessment," the organization emphasized that Indonesia is considering how Bitcoin can enhance its economic resilience over time. The discussions also involved expanding mining infrastructure and launching education programs on Bitcoin and blockchain technology. Indonesia, with a population of over 280 million and a GDP of approximately 1.4 trillion USD, is the world's fourth most populous country and the sixteenth largest economy.

Bitcoin Indonesia pointed out that the country can leverage its rich geothermal and hydropower resources to power Bitcoin mining, citing examples of other countries successfully transforming similar strategies into job engines. The discussions were with special staff from the office of Vice President Gibran Rakabuming Raka, including bullish forecasts on Bitcoin from figures such as MicroStrategy founder Michael Saylor.

Its prediction that "Bitcoin may reach between 13 million to 49 million dollars by 2045" is used as an argument to demonstrate the long-term value of Bitcoin.

Education First: Vice President's Staff Acknowledges the Importance of Widespread Bitcoin Knowledge

Bitcoin Indonesia is also promoting education-focused initiatives to build widespread public awareness of the asset. An official from the vice president's office seems to agree on the importance of financial literacy, reportedly stating:

"Indonesia must continue to carry out Bitcoin education in the future."

Despite the growing momentum for adopting Bitcoin as a reserve asset against the backdrop of rising global inflation and debt, Indonesia's macroeconomic situation may not urgently require such a move. The country's debt/GDP ratio remains at a manageable 39%, and the annual inflation rate as of January 2025 has been effectively controlled at 0.76%.

Indonesia's encryption tax reform implemented simultaneously

The revised encryption tax law in Indonesia took effect on August 1. The new tax system imposes a 0.21% trading tax on users of domestic exchanges, which is double the previous tax rate.

For users trading through foreign platforms, the seller's tax has jumped from 0.2% to 1%. Although the value-added tax (VAT) on purchases has been abolished, cryptocurrency miners are now required to pay 2.2% VAT, and with the special 0.1% mining tax being phased out before 2026, miners will soon be taxed at the regular income tax rate.

In Indonesia, cryptocurrency is allowed for investment but prohibited for payment.

The market is growing rapidly. In 2023, the cryptocurrency trading volume exceeded 6.5 trillion Indonesian Rupiah (approximately 400 million USD), and the number of users on licensed platforms has surpassed 20 million, exceeding the number of participants in the country's stock market.

Indonesia's cryptocurrency tax revenue surged in 2024, reaching its highest level since the government began taxing digital assets in 2022. According to officials from the tax authority, 620 billion Indonesian rupiah (approximately 38 million USD) was collected last year, an increase of 181% compared to 220 billion Indonesian rupiah in 2023.

Conclusion: The proposal for Bitcoin treasury reserves promoted by Bitcoin Indonesia marks a new stage in the exploration of sovereign-level encryption asset allocation by emerging market countries. Indonesia, with its large population base, energy endowment, and controllable macro indicators, provides a unique testing ground for Bitcoin reserve strategies. However, the new policy with doubled tax rates and the reform of the mining tax system highlight that the regulatory framework is still in a dynamic adjustment period. MEXC's heavy bet on Triv exchange confirms capital's long-term optimism for the cryptocurrency market in the largest Muslim country in Southeast Asia, where policy compliance and the ability to implement clean energy mining will be key variables for Indonesia's potential to overtake its competitors.