The Indonesian government is exploring the potential of using Bitcoin as a reserve asset, according to Bitcoin Indonesia. The group recently met with government officials to discuss how adopting such a strategy could boost the nation’s economic growth.
“We were invited to the Vice President’s office to present how Bitcoin could benefit the country,” Bitcoin Indonesia shared in a post on X on Monday.
“We explored a bold idea: Using Bitcoin mining as a national reserve strategy.”
“Yes, seriously. [Indonesia] is looking into how Bitcoin could fuel long-term economic strength,” the Bitcoin community wrote on X. Other focus areas included Bitcoin mining and education initiatives, they added.
With a population exceeding 280 million, Indonesia is the fourth most populous country globally. Its estimated Gross Domestic Product (GDP) stands at $1.4 trillion, ranking it as the world’s 16th largest economy.
Key focus areas include Bitcoin mining opportunities and education
In its presentation, Bitcoin Indonesia outlined how the country could harness its vast hydroelectric and geothermal energy resources to drive economic growth—a strategy that has already led to substantial job creation in other nations adopting Bitcoin.
The meeting took place with special staff from the office of Indonesia’s Vice President, Gibran Rakabuming Raka.
During the discussion, the group also highlighted Michael Saylor’s bold prediction that Bitcoin could reach $13 million by 2045 in a base case scenario, and as high as $49 million in a bull case.
Emphasizing the need for widespread Bitcoin education to encourage adoption, Bitcoin Indonesia noted that this view was echoed by a representative from the Vice President’s office:
“Indonesia must also continue to educate about Bitcoin in the future,” the official reportedly stated.
Bitcoin’s potential for long-term price appreciation has drawn the attention of nation-states like the United States, which view it as a strategic reserve asset to combat rising debt-to-GDP ratios and hedge against inflation.
However, this argument may carry less weight for Indonesia, where the debt-to-GDP ratio remains relatively low at 39%, and inflation is well-managed, standing at just 0.76% as of January 2025.
Indonesia recently made anti-crypto policies
Indonesia permits cryptocurrency trading but bans its use as a means of payment.
On Friday, the Finance Ministry increased taxes on both crypto traders and miners. The income tax on crypto sales through local exchanges more than doubled from 0.1% to 0.21%, while sales conducted on foreign exchanges saw a fivefold jump, rising from 0.2% to 1%. Additionally, the value-added tax (VAT) on crypto mining activities was doubled from 1.1% to 2.2%.
The ban on crypto payments is not being widely enforced
Indonesia has enforced a ban on crypto payments since 2017 and reaffirmed in 2023 that tourists using crypto for transactions would “be dealt with firmly.”
However, enforcement appears to be lax. A Cointelegraph reporter recently observed several real estate listings in Bali openly accepting Bitcoin, despite the official prohibition.
