Indonesia Explores National Bitcoin Reserve
The Indonesian government is reportedly considering using Bitcoin as a reserve asset, according to Bitcoin Indonesia, which recently met with national officials to explore the concept’s potential to support long-term economic growth.
“We were invited to the Vice President’s office to present how Bitcoin could benefit the country,” Bitcoin Indonesia said in an X post 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 added. Other topics discussed included Bitcoin mining and educational initiatives.
Indonesia, home to over 280 million people, is the fourth-most-populous country globally and ranks as the 16th largest economy, with a GDP of around $1.4 trillion. Bitcoin Indonesia's presentation touched on how the country could harness its rich hydroelectric and geothermal energy resources to fuel economic development—a model that has contributed to job creation in other nations adopting Bitcoin.
The meeting involved special staff from the office of Vice President Gibran Rakabuming Raka. During the session, the group referenced Michael Saylor’s Bitcoin forecast, which projects the asset could reach $13 million by 2045 in a base case and $49 million in a bull case.
The importance of Bitcoin education was also highlighted, with Bitcoin Indonesia recalling a sentiment shared by one of the vice president’s staff:
“Indonesia must also continue to educate about Bitcoin in the future.”
Bitcoin’s potential as a long-term strategic reserve has attracted interest from several governments seeking to hedge against inflation or address growing debt burdens. However, this rationale may be less pressing for Indonesia, which maintains a relatively low debt-to-GDP ratio of 39% and a controlled inflation rate of 0.76% as of January 2025.
Indonesia currently permits crypto trading but prohibits its use for payments. On Friday, the country’s Finance Ministry increased taxes on crypto trading and mining. Income tax on domestic crypto exchange sales rose from 0.1% to 0.21%, while taxes on foreign exchange sales climbed from 0.2% to 1%. The value-added tax on mining activities also doubled from 1.1% to 2.2%.
Although crypto payments have been banned in Indonesia since 2017—and reaffirmed in 2023 with strict warnings for tourists—enforcement appears limited. A Cointelegraph reporter recently observed real-estate listings in Bali that openly accepted Bitcoin.
Sources:
https://cointelegraph.com/news/indonesia-exploring-bitcoin-reserve-strategy
https://tradingeconomics.com/indonesia/government-debt-to-gdp