The Indonesian government has been exploring Bitcoin as a reserve asset, according to Bitcoin Indonesia, which recently met with officials to discuss how the strategy can drive economic growth in the country.
“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 wrote on X. Other focus areas included Bitcoin mining and education initiatives, they added.
Indonesia is the fourth most populous country in the world with over 280 million people. It has an estimated Gross Domestic Product (GDP) of $1.4 trillion, making it the 16th largest economy in the world.
Bitcoin mining opportunities, education among key areas of focus
Bitcoin Indonesia’s presentation included pointers on how the country can leverage its abundant hydroelectric and geothermal resources to fuel economic growth — a strategy that has spurred significant job creation in other countries embracing Bitcoin (BTC).
Bitcoin Indonesia said the meeting was with special staff from the office of Indonesia’s Vice President, Gibran Rakabuming Raka.
The Bitcoiners even presented Michael Saylor’s prediction that Bitcoin would reach $13 million by 2045 in a base case scenario and $49 million in a bull case.
Bitcoin Indonesia also stressed the importance of Bitcoin education initiatives to drive adoption, a view one representative from Indonesia’s Vice President’s office seemingly agreed with:
“Indonesia must also continue to educate about Bitcoin in the future,” Bitcoin Indonesia recalled the official saying.
Bitcoin’s potential for long-term price growth has attracted nation-states like the US to adopt it as a strategic reserve asset to address their worsening debt to gross domestic product (debt-to-GDP) ratio and hedge against inflation.
That pitch may be less relevant for Indonesia, however, as its debt-to-GDP remains relatively low at 39%, while its annual inflation rate (as of January 2025) is firmly under control at 0.76%.
Indonesia recently made anti-crypto policies
Indonesia allows crypto trading but prohibits its use for payments.
Last Friday, Indonesia’s Finance Ministry raised taxes on crypto traders and miners. Income tax on crypto sales via local exchanges more than doubled from 0.1% to 0.21%, while sales on foreign exchanges rose fivefold from 0.2% to 1%.
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Additionally, the value-added tax on crypto mining activities doubled from 1.1% to 2.2%.
Crypto payment ban not seeing widespread enforcement
Indonesia has imposed its ban on crypto payments since 2017, and affirmed in 2023 that tourists making crypto payments would also “be dealt with firmly.”
Despite the ban, enforcement appears to be lax, with a Cointelegraph reporter on the ground recently observing several real-estate listings in Bali openly accepting Bitcoin.
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