Indonesia Considers Bitcoin as Strategic Reserve

Government Eyes Bitcoin for Long-Term Growth

Indonesia is quietly considering adding Bitcoin to its national reserves, according to a statement from Bitcoin Indonesia, which said it recently met with staff from Vice President Gibran Rakabuming Raka’s office. During the meeting, the group pitched BTC as a tool for economic growth, including using Bitcoin mining as a strategic reserve strategy.

The country’s potential interest in BTC is framed around its abundant geothermal and hydroelectric energy, which could make mining operations both sustainable and economically viable. Bitcoin Indonesia also shared that the Vice President’s staff expressed interest in Bitcoin education programs to drive broader understanding and adoption.

Bitcoin Mining and Saylor’s $13M Prediction

Bitcoin Indonesia presented a wide-ranging vision that included leveraging renewable energy to support a state-backed mining strategy, pointing to examples of job creation and economic stimulus seen in other crypto-friendly jurisdictions.

In the same meeting, Michael Saylor’s $13 million base case prediction for Bitcoin by 2045 was reportedly discussed - with a $49 million BTC price as the more bullish scenario. While bold, these numbers were used to support the long-term upside of adopting Bitcoin as part of a diversified sovereign reserve.

Why Indonesia’s Macro Profile Is Unique

Unlike debt-ridden economies exploring Bitcoin as a hedge, Indonesia’s debt-to-GDP ratio stands at a modest 39%, and inflation is under control at 0.76% as of January 2025. This makes the country less desperate for a hedge but still well-positioned to experiment with alternative reserve strategies.

Still, Bitcoin’s long-term potential is a key motivator, and officials reportedly agreed that the country needs to ramp up Bitcoin-related education to keep pace with innovation.

Harsh Crypto Taxes Contradict the Optimism

Ironically, these progressive discussions are happening in the same month that Indonesia enacted a sweeping tax increase on crypto activities. The income tax on crypto sales via local platforms jumped from 0.1% to 0.21%, while trading on foreign exchanges now incurs a 1% tax, up from 0.2%. Miners are also hit: VAT on mining activities doubled from 1.1% to 2.2%.

While the crypto payment ban remains in place (enforced since 2017), reports suggest the government is turning a blind eye to certain regions like Bali, where real estate listings openly accept Bitcoin despite the restrictions.

Bitcoin Reserve Talk Highlights Policy Whiplash

The contrast between crypto tax hikes and potential Bitcoin reserve adoption shows the policy split in Indonesia. While regulators raise revenue through strict taxation, others in the government see Bitcoin as a long-term strategic opportunity.

The outcome of this internal debate could shape whether Indonesia becomes a Bitcoin innovator or simply a high-tax jurisdiction. With public hearings already underway in Brazil to formalize their own BTC reserves, Southeast Asia could soon follow Latin America’s lead — or watch from the sidelines.