Indonesia is considering the bold move of adopting Bitcoin as a national reserve asset, according to Bitcoin Indonesia, which recently presented its proposal to the office of Vice President Gibran Rakabuming Raka. The discussions covered Bitcoin mining, education initiatives, and the potential for Bitcoin to strengthen the country’s long-term economic position.
Bitcoin as a National Reserve Asset
In a post on X (formerly Twitter), Bitcoin Indonesia revealed that its team was invited to the Vice President’s office to explain how Bitcoin could contribute to Indonesia’s economic growth. One of the key ideas pitched was using Bitcoin mining as part of a national reserve strategy, a move the group said could support long-term economic strength.
The organization highlighted global examples where Bitcoin adoption has contributed to economic diversification, emphasizing that Indonesia—home to over 280 million people and the world’s 16th-largest economy with a $1.4 trillion GDP—could similarly benefit.
Leveraging Natural Resources for Bitcoin Mining
During the presentation, Bitcoin Indonesia outlined how the country could use its hydroelectric and geothermal energy resources to support Bitcoin mining operations. Similar approaches in other countries have not only boosted economic activity but also created jobs in the growing crypto sector.
The group also referenced Michael Saylor’s Bitcoin price projections, predicting that BTC could reach $13 million by 2045 under base conditions and potentially $49 million in a bullish scenario.
Focus on Bitcoin Education and Adoption
Education was another focal point of the discussions. Bitcoin Indonesia stressed that educating the public and policymakers about Bitcoin is essential for widespread adoption and responsible integration into the economy. A representative from the Vice President’s office reportedly agreed, stating that ongoing Bitcoin education will be crucial for Indonesia’s future financial landscape.
While Indonesia’s debt-to-GDP ratio is a modest 39% and inflation remains low at 0.76% as of January 2025, Bitcoin could still serve as a strategic hedge against future economic uncertainties, following the example of countries exploring Bitcoin as a reserve asset to counter debt and inflation risks.
Crypto Regulations Tighten Despite Growing Interest
Despite the rising discussions around Bitcoin’s national role, Indonesia maintains a ban on crypto payments—a policy first introduced in 2017 and reaffirmed in 2023. Enforcement, however, remains loose, with reports of real estate listings in Bali still accepting Bitcoin payments.
At the same time, the government recently increased taxes on crypto trading and mining activities. As of Friday:
- Income tax on crypto sales via local exchanges rose from 0.1% to 0.21%.
- Tax on foreign exchange trades surged from 0.2% to 1%.
- Value-added tax on crypto mining doubled from 1.1% to 2.2%.
These measures reflect a cautious stance by regulators, even as discussions around Bitcoin adoption as a strategic asset gain momentum.
Indonesia’s Bitcoin Future
If Indonesia moves forward with its national Bitcoin reserve strategy, it would join a growing number of nations considering Bitcoin as a long-term economic hedge. For now, the country appears to be balancing innovation with regulation, exploring the opportunities Bitcoin presents while maintaining control over crypto use and taxation.
