The Indonesian government has explored Bitcoin as a reserve asset, according to Bitcoin Indonesia, who recently met officials to discuss how the strategy can stimulate the country’s economic growth.
“We were invited to the vice-president office to present how Bitcoin could benefit the country,” Bitcoin Indonesia said on Monday in a post.
“We have explored a daring idea: use bitcoin extraction as a national reserve strategy.”
“Yes, seriously. [Indonesia] Examination how bitcoin could fuel long-term economic force, “wrote the Bitcoin community on X. Other areas of interest included Bitcoin extraction and education initiatives, they added.
Indonesia is the fourth most populous country in the world with more than 280 million people. It has a gross domestic product (GDP) estimated by 1.4 billion of dollars, which makes it the 16th largest economy in the world.
Bitcoin exploration opportunities, education among the main areas of interest
The presentation of Bitcoin Indonesia included pointers on how the country can take advantage of its abundant hydroelectric and geothermal resources to fuel economic growth – a strategy that has stimulated significant job creation in other countries embracing Bitcoin (BTC).
Bitcoin Indonesia said that the meeting was with the special staff of the Vice-President of the Office of Indonesia, Gibran Rakabuming Raka.
The bitcoiners even presented Michael Saylor’s prediction that Bitcoin would reach $ 13 million by 2045 in a basic scenario and $ 49 million in a bull case.
Bitcoin Indonesia also stressed the importance of Bitcoin education initiatives to stimulate adoption, a point of view of a representative of the office of the Indonesian vice-president who apparently agreed:
“Indonesia must also continue to educate Bitcoin in the future,” said Bitcoin Indonesia.
Bitcoin long-term price growth potential has attracted nation states such as the United States to adopt it as a strategic reserve asset to respond to their aggravation debt to the raw indoor products ratio (debt to GDP) and hide against inflation.
This point can however be less relevant for Indonesia, because its debt to GDP remains relatively low at 39%, while its annual inflation rate (in January 2025) is firmly under control at 0.76%.
Indonesia recently made anti-Crypto policies
Indonesia allows cryptographic trading but prohibits its use for payments.
Last Friday, the Ministry of Finance of Indonesia increased taxes on merchants and crypto minors. Income tax on crypto sales via local exchanges has more than doubled from 0.1% to 0.21%, while sales on foreign exchanges went from 0.2% to 1%.
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In addition, the value added tax on cryptography extraction activities doubled from 1.1% to 2.2%.
The ban on the payment of the crypto not seeing the generalized application
Indonesia has imposed its ban on cryptographic payments since 2017 and confirmed in 2023 that tourists making cryptographic payments “would also be treated”.
Despite the ban, the application seems to be a lax, with a Cointelegraph journalist in the field who recently observed several real estate advertisements in Bali openly accepting Bitcoin.
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