According to official sources, Microsoft announced that it will invest $1.7 billion in building cloud computing and AI infrastructure in Indonesia over the next four years, and promised to help 840,000 people receive AI skills training and support the country's growing developer community. This is Microsoft's largest single investment in Indonesia in 29 years.

Indonesia's Financial Services Authority (OJK) will take over regulation of the crypto industry from the commodities agency Bappebti. Crypto firms must undergo evaluation in a regulatory sandbox before being licensed to operate in the country. The OJK aims to prioritize consumer protection and education, and firms operating without evaluation in the sandbox will be considered illegal. The sandbox provides a safe and isolated environment for testing and innovation development, helping to enhance security and responsible management in the financial sector. Once under OJK's oversight, crypto assets will likely be reclassified as financial instruments.

Indonesia's cryptocurrency regulatory agency, the Commodity Futures Trading Regulatory Agency (Bappebti), has called on the Minister of Finance to reconsider the tax rate for digital assets. Cryptocurrencies are considered commodities in Southeast Asian countries, so they are subject to value-added tax (VAT) and income tax. However, when cryptocurrency regulatory authority is transferred to the country's financial services regulatory agency, OJK, in 2025, cryptocurrencies may be considered securities in the country. Bappebti also stated that the digital asset industry is still in its early stages and needs room for growth before making a significant tax contribution to the country's revenue.

Indonesia's Ministry of Finance has reported that the total tax revenue from cryptocurrency in 2023 was $31.7 million. However, the country's tax revenue fell by 62% last year compared to the partial collection period in 2022, when the tax regime was introduced. Crypto transactions in Indonesia are subject to dual taxation, which includes a 0.1% income tax and a 0.11% value-added tax, while local crypto exchanges must contribute around 0.04% tax to the national crypto bourse. Despite bitcoin's 159% increase in 2023, Indonesia's crypto tax revenue experienced a downturn, paralleling a 51% decrease in the country's crypto transaction volumes during the same period. Local exchanges have protested the high tax rates and suggested that crypto transactions should only be subject to income tax, not VAT.

Over the Christmas weekend, Indonesian authorities conducted a raid on ten suspected bitcoin mining sites that were allegedly using stolen electricity from the national grid. Although Indonesia is not known for being a hub for mining, it is a fast-growing crypto adopter. Electricity theft is considered a criminal offense in Indonesia, with penalties of up to five years in prison or a fine of up to twice the value of the unpaid electricity. At the raided sites in Medan, North Sumatra, authorities found 1,314 bitcoin rigs and detained 26 individuals. The suspects allegedly stole electricity by tapping into state-owned utility poles, resulting in losses of around $100,000 to the state.

The Indonesian government has mandated that all crypto exchanges operating in the country must register with the newly launched national bourse for digital assets. The Commodity Future Exchange (CFX) is designed to operate like traditional stock exchanges but with a focus on digital assets. The government hopes that the bourse will help monitor asset liquidity and record crypto transactions for tax purposes. Indonesia has more than 18 million registered crypto traders compared to around 12 million stock traders, according to official data from 2023.

D3 Labs, a blockchain solutions provider in Indonesia, has partnered with the Indonesian Blockchain Association to support the initial phase of the Digital Rupiah development. The collaboration aligns with the Garuda Project initiated by Bank Indonesia and aims to create a digital national currency.

Milk Partners Co., Ltd. has announced the official launch of its blockchain-based loyalty integration platform, MiL.k, in Indonesia. The platform aims to revolutionize the loyalty market by offering point management and exchange services for various businesses. MiL.k has obtained an ESO license in Indonesia, ensuring reliable and stable service for users.

Indonesia has joined the trend of governments embracing digital assets by launching its own national cryptocurrency exchange on July 20. The exchange includes a Futures Clearing House to ensure seamless transactions between buyers and sellers, demonstrating the government's commitment to a transparent and secure crypto trading ecosystem. The establishment of a national cryptocurrency exchange could also promote financial inclusion in Indonesia, offering a viable alternative for accessing financial services in remote areas. However, regulatory oversight is crucial in mitigating risks associated with unregulated spaces, striking a balance between promoting innovation and protecting consumers.

Indonesia has confirmed plans to launch its own cryptocurrency exchange, according to a recent announcement from the country's financial regulator. The move aims to expand the country's financial services sector and improve access to digital assets for its citizens.