Indonesia Explores Bitcoin as Reserve Asset to Boost Economy

Indonesia is now exploring the use of Bitcoin as a national reserve asset, according to Bitcoin Indonesia. The idea is being considered to help protect the economy from inflation, reduce dependence on the US dollar, and diversify the country’s financial reserves. This initiative is being pushed by the Vice President’s office, showing that the topic has reached a high level of government interest.

A Strategic Proposal 

The conversation began when representatives from Bitcoin Indonesia, the largest local Bitcoin community, were invited to meet with special staff from Vice President Gibran Rakabuming Raka’s office. According to a public post on X, Bitcoin Indonesia explained how Bitcoin might strengthen the nation’s economic position.

 “Yes, seriously. [Indonesia] is looking into how Bitcoin could fuel long-term economic strength,” they said in the post.

The meeting also covered two key areas:

• Bitcoin mining powered by renewable energy
• Public education programs about Bitcoin and blockchain

Why Bitcoin? 

Indonesia is the fourth most populous country, with over 280 million people. It is also the 16th largest economy with a GDP of $1.4 trillion. As global financial instability grows, countries like Indonesia are evaluating alternatives to fiat reserves such as the US dollar.

Here are the reasons cited for considering Bitcoin:

• Diversification of reserves: Adding Bitcoin to the national reserve could reduce risk by spreading it across multiple assets.
• Inflation hedge: Bitcoin’s fixed supply may help protect purchasing power during periods of currency depreciation.
• Energy resource advantage: Indonesia has vast hydroelectric and geothermal energy resources that can power sustainable mining.

While these benefits are notable, Indonesia is not facing a financial crisis. The country’s debt-to-GDP ratio is stable at 39%, and inflation was only 0.76% in January 2025. So, this move is less about urgency and more about preparing for long-term shifts.

Renewable Energy-Powered Mining Under Discussion

One major topic was using Indonesia’s renewable energy for Bitcoin mining. Bitcoin Indonesia proposed that the country could turn its geothermal and hydroelectric power into an economic driver. This model has worked in other nations, where mining created local jobs and drew tech investment.

This approach could:

• Create local employment
• Attract global mining firms
• Generate new tax revenue
• Reduce carbon emissions compared to coal-based energy systems

Support for Education and Public Understanding

The discussion also emphasized Bitcoin education. Representatives urged the government to invest in public education programs focused on:

• What Bitcoin is
• How it works
• How citizens can use it responsibly

This suggests a shared view that understanding the technology is as important as holding it.

Sovereign Wealth Fund May Buy Bitcoin

Gabriel Rey, CEO of Triv (a licensed crypto exchange), and Anthony Leong from HIPMI (a national youth business group), proposed that Bitcoin should be included in the portfolio of Indonesia’s sovereign wealth fund, BPI Danantara.

The agency, launched in February 2025, was created to manage state assets for long-term development. Rey and Leong suggest that if Danantara allocates IDR 300 trillion (about $18.3 billion) to Bitcoin, it could buy around 200,000 BTC.

This potential investment could:

• Strengthen reserves if Bitcoin’s price rises
• Offset part of the national debt over time
• Align Indonesia with other countries adding Bitcoin to their treasuries

Around the same time, crypto exchange Triv secured an investment from MEXC Ventures at a $200 million valuation. This shows growing confidence in the local market.

Government and Regulatory Response

Not everyone is ready to move forward. Indonesia’s Financial Services Authority (OJK) responded with caution. While open to discussion, they stressed the need for clear regulation and strong governance.

The issue of Bitcoin as a national reserve is still under consideration, and no formal policy has been adopted yet.

Worth noting, new crypto tax rules introduced on August 1 may affect user activity:

• Domestic exchange users now face a 0.21% tax, up from 0.1%
• Users trading on foreign exchanges face a 1% seller tax, up from 0.2%
• Crypto miners now pay 2.2% VAT
• A special 0.1% mining tax will be removed by 2026 and replaced with standard income tax

These tax changes aim to formalize the industry but may increase costs for retail traders and miners.

DigiAsia Corp’s BTC Treasury Plan

Private companies are also joining the trend. DigiAsia Corp, listed under the ticker FAAS on Nasdaq, announced plans to treat Bitcoin as a treasury reserve asset.

Its strategy includes:

• Raising up to $100 million to start buying BTC
• Allocating up to 50% of net profits toward Bitcoin purchases
• Exploring yield-generation through lending or staking

The announcement caused DigiAsia’s stock to surge 91% in a single day, though the price quickly fell after hours. 

FAQs

1. Is Indonesia adopting Bitcoin as a reserve asset?
   Not yet. The idea is under discussion at high levels of government, including the Vice President’s office, but no formal policy has been announced.

2. Why is Indonesia considering Bitcoin for its national reserves?
   Indonesia aims to diversify reserves, hedge inflation, and reduce reliance on the US dollar. It also sees potential in using renewable energy to support Bitcoin mining.

3. What role does BPI Danantara play in this proposal?
   BPI Danantara, Indonesia’s sovereign wealth fund, has been proposed as a potential buyer of Bitcoin to manage state assets and support long-term economic development.

Conclusion: Capabilities, Not Hype

Indonesia’s interest in Bitcoin as a reserve asset is a measured, strategic move. The focus is on:

• Economic diversification
• Use of renewable energy for mining
• Public education
• Institutional participation through sovereign wealth funds and private companies

This isn’t a rushed or emotional decision. With macroeconomic conditions stable, the country is exploring Bitcoin’s capabilities—not betting its future on the asset, but considering how it might fit into a broader financial strategy.

Resources:

1. DigiAsia Announcement: https://www.newsfilecorp.com/release/252493/DigiAsia-Launches-Bitcoin-Treasury-Reserve-Strategy-Exploring-Up-to-US100-Million-Capital-Raise-to-Acquire-BTC

2. Indonesia Population Data: https://unstats.un.org/UNSDWebsite/capacity-development/data-for-now/story-details/First-Indonesian-vital-stat-report-powered-by-administrative-data

3. Indonesia’s recent crypto tax hike report: https://www.reuters.com/sustainability/boards-policy-regulation/indonesia-raise-tax-rate-crypto-transactions-2025-07-30/