Indonesia is reportedly considering using Bitcoin mining and reserves as part of its national strategy. Here’s what to know.

According to the latest reports from Bitcoin Indonesia, Indonesia is actively looking into the idea of establishing a national Bitcoin reserve. Bitcoin Indonesia, the country’s largest crypto community, revealed that it presented this strategy to Vice President Gibran Rakabuming Raka’s office sometime during the week.

The proposal goes beyond just holding BTC. It includes launching nationwide Bitcoin mining operations and building an education ecosystem around it. 

As the rest of the world’s interest in BTC grows, Indonesia is setting itself up to join the list of countries adding Bitcoin to their official economic planning.

Bitcoin Reserve Strategy

Bitcoin Indonesia’s proposal focuses on taking advantage of the country’s abundant renewable energy resources for BTC mining. It plans to use Hydroelectric and geothermal energy sources, which are already part of Indonesia’s energy mix, to support mining operations.

This could not only generate revenue for the country’s economy, but it could also create new jobs in the tech and energy sectors.

BIG NEWS: 🇮🇩 Indonesia is exploring Bitcoin as a national reserve.

We were invited to the Vice President’s office to present how Bitcoin could benefit the country.

What we discussed could shape the future of Indonesia’s economic strategy. 🧵👇 pic.twitter.com/QGKgGRRgEU

— Bitcoin Indonesia (@bitcoinindo21) August 5, 2025

“We explored [using] Bitcoin mining as a national reserve strategy,” said Bitcoin Indonesia on X. “Yes, seriously. [Indonesia] is looking into how Bitcoin could fuel long-term economic strength.”

The pitch reportedly impressed Vice President Gibran’s team, and a greenlight could be underway.

Bitcoin Education Is Very Important

During their presentation, Bitcoin Indonesia pointed out the need to expand BTC education. They stressed that without public understanding of the technology, adoption would be limited. Interestingly, this point was echoed by representatives from the vice president’s office, who agreed that long-term education is important.

This could lead to future moves like Bitcoin-related curriculum in universities, public campaigns and developer training programs. 

The group also cited BTC evangelist Michael Saylor’s long-term price predictions: $13 million in a base case and $49 million in a bull case by the next decade.

How Indonesia Compares To The Rest Of The World

Indonesia isn’t the only country considering Bitcoin as a reserve asset. The idea is starting to gain ground around the world.

For example, the United States reportedly held around 200,000 BTC as of March, while Bhutan holds an estimated $1.4 billion in BTC reserves.

Kazakhstan is investing in Bitcoin ETFs and blockchain companies, while Brazil will hold its first public hearing on a national Bitcoin reserve strategy this August. Just as more countries look to Bitcoin for long-term financial security, Indonesia’s move could be a very timely one.

The Current State of Crypto in Indonesia

Despite the discussions about BTC reserves, Indonesia still has a complicated relationship with crypto.

For example, Crypto trading is legal, but using crypto for payments is banned. The government also reaffirmed in 2023 that tourists caught using crypto for payments would face penalties.

Taxes on crypto activities were recently raised, with income tax on local exchange transactions more than doubling to 0.21%. On the other hand, foreign exchange trades now face a 1% tax.

VAT on mining was also increased from 1.1% to 2.2%. In all, these policies seem to show that the Indonesian government is being cautious with its crypto approach. It is welcoming innovation but maintaining control over its use.