Indonesia Considers National Bitcoin Reserve Amid Economic Strategy Talks

Indonesia, the Asian powerhouse, is exploring the possibility of creating its very own Bitcoin Reserve to strengthen its economy. This is a significant development for the country’s approach to digital finance and cryptocurrency. According to the information from Bitcoin Indonesia, a leading advocacy group, government officials have already discussed the creation of a reserve, including members from the Vice President’s Office.

Bitcoin Indonesia posted on X.com that they were invited to present how Bitcoin (BTC) can boost the country’s economy. They posted, “We explored a bold idea: Using Bitcoin mining as a national reserve strategy.”

Indonesia Considering National Bitcoin Reserve

Indonesia, home to over 280 million people and the world’s 16th-largest economy with a GDP of $1.4 trillion, possesses vast geothermal and hydroelectric resources. According to the proposal submitted by Bitcoin Indonesia, these renewable energy sources can be used to develop a national Bitcoin mining infrastructure. These strategies have the potential to increase job creation in the Indonesian crypto market as well as establish the country as a key player in the global Bitcoin landscape.

During their presentation, Bitcoin Indonesia gave the example of American entrepreneur Michael Saylor’s bullish projections for Bitcoin prices. These included a bull case of $49 million and a base case of $13 million by 2045. These forecasts are used to illustrate the long-term potential of holding Bitcoin as a strategic asset.

Educating the masses about Bitcoin was another central theme. Representatives from the Vice President’s office acknowledged the importance of educating the public about Bitcoin to facilitate future adoption. “Indonesia must also continue to educate about Bitcoin in the future,” was stated in an official quote.

While Bitcoin is gaining popularity worldwide as a hedge against inflation and debt, Indonesia's current economic indicators provide a different perspective. With a relatively low debt-to-GDP ratio of 39% and a stable inflation rate of 0.76% as of January 2025, Indonesia may view Bitcoin as a technology and economic opportunity rather than an urgent budgetary hedge.

The investigation into Bitcoin reserves comes only days after the Indonesian government tightened tax policies on the cryptocurrency sector. Income taxes on domestic cryptocurrency transactions have more than doubled to 0.21%, while foreign exchange taxes have increased to 1%. The value-added tax on cryptocurrency mining was also increased to 2.2%.

Despite a statewide ban on cryptocurrency payments since 2017, enforcement appears to be poor, especially in Bali, where some real estate listings openly take Bitcoin. As conversations progress, Indonesia's interest in Bitcoin may mark a shift in national policy, allowing the country to become a regional leader in digital asset strategy while negotiating a challenging legal environment.