Objectives of the Enactment of MoF Regulation 108/2025
On 31 December 2025, Ministry of Finance (“MoF”) Regulation No. 108 of 2025 on the Technical Guidelines for Access to Financial Information for Tax Purposes (“MoF Regulation 108/2025”) was enacted. This regulation will be effective as of 1 January 2026 and will replace MoF Regulation No. 70/PMK.03/2017.
MoF Regulation 108/2025 was enacted as one of the follow-up measures to the execution of certain international agreements, namely: (i) Addendum to the Multilateral Competent Authority Agreement to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information; and (ii) Multilateral Competent Authority Agreement on Automatic Exchange of Information pursuant to the Crypto-Asset Reporting Framework.
Generally, both of the above international agreements contain Indonesia’s commitment, together with other signatory countries or jurisdictions, to implement the automatic exchange of information relating to financial account information based on the amendment of Common Reporting Standard (“CRS”) and automatic exchange of information relating to crypto-assets based on the Crypto-Asset Reporting Framework (“CARF”). One of the noteworthy aspects of this new regulation is the expansion of reporting obligations to include digital payment and cryptocurrency transactions.
Authority and Subjects of Information Access
MoF Regulation 108/2025 grants authority to the Directorate General of Taxation (“DGT”) to obtain access to financial information for taxation purposes. Such information access includes the authority to receive and obtain financial information, evidence, or explanations, either automatically or upon request. This authority is exercised in the context of implementing international agreements and enforcing the provisions of laws and regulations in the field of taxation. Accordingly, the following parties are required, either automatically or upon request, to submit such information:
- Financial institutions; and
In general, financial institutions include: (i) financial service institutions; (ii) other financial services institutions; and/or (iii) other entities classified as financial institutions under the CRS, which conduct business activities as depository institutions, custodian institutions, certain insurance companies, and/or investment entities as regulated under MoF Regulation 108/2025. However, in relation to information access obligations, MoF Regulation 108/2025 distinguishes financial institutions into two categories, namely financial institutions that are required to report financial account information (“CRS Reporting Financial Institutions”), and financial institutions that are not required to report financial account information (“Non-Reporting CRS Financial Institutions”). By virtue of such distinction in obligation, CRS Reporting Financial Institutions are required to automatically submit information to the DGT. Conversely, Non-Reporting CRS Financial Institutions are not required to automatically submit information. However, the DGT may submit a request for information to such Non-Reporting CRS Financial Institutions.
- CARF reporting crypto-assets service providers (“CARF Reporting CASPs”).
CARF Reporting CASPs include: (i) other CARF entities, whether in the form of legal entities or non-legal entities (legal arrangements), that meet the criteria to be classified as financial institutions under the CARF; and/or (ii) individuals, where both categories provide services facilitating any exchange between crypto-assets and fiat currencies, as well as exchanges between one or more types of crypto-assets. Crypto-assets is defined under the MoF Regulation 108/2025 as a digital representation of value that relies on distributed ledger technology or similar technology, which is cryptographically secured to validate and secure transactions. Such crypto-assets include all types of crypto-assets, except for: (i) central bank digital currencies (digital fiat currencies issued by central bank); (ii) certain electronic money products as regulated under MoF Regulation 108/2025; and (iii) other crypto-assets which, based on reasonable determination by the CARF Reporting CASPs, can not be used for payment or investment purposes.
In this regard, only CARF Reporting CASPs which satisfy the legal relevance criteria (nexus) that are subject to reporting obligations. Accordingly, a legal relevance criteria (nexus) is deemed to be exist where one of the following criteria are met:
- the entity or individual is a tax subject in Indonesia;
- an entity that: (i) is established or governed under Indonesian law; and (ii) has legal entity status in Indonesia or is required to submit a tax return or information report to the DGT in relation to the entity’s income;
- an entity that is managed from Indonesia; or
- an entity or individual that has a permanent establishment in Indonesia.
Implementation of the Information Access
In general, MoF Regulation 108/2025 provides that the implementation of information access is viewed from two different perspectives, namely the obligation and the source of such obligation, as follows:
- From the perspective of the obligation, MoF Regulation 108/2025 stipulates that access to information may be implemented either automatically or upon request.
- From the perspective of the source of the obligation, MoF Regulation 108/2025 provides that access to information is implemented: (i) in the context of implementing international agreements; and (ii) in the context of enforcing the provisions of laws and regulations in the field of taxation.
CRS Reporting Financial Institutions, Non-Reporting CRS Financial Institutions, and CARF Reporting CASPs that meet the criteria under MoF Regulation No. 108 of 2025 are required to first register to the DGT. Such registration is carried out through an application mechanism for the purpose of being designated as a CRS Reporting Financial Institutions, a Non-Reporting CRS Financial Institutions, or a CARF Reporting CASPs. Nevertheless, CRS Reporting Financial Institutions and CARF Reporting CASPs are, in effect, already subject to the obligation to automatically submit information from the moment they satisfy the criteria to be classified as a CRS Reporting Financial Institutions or a CARF Reporting CASPs, as stipulated under MoF Regulation 108/2025.
CRS Reporting Financial Institutions are required to submit reports containing financial account information. Such information shall be submitted to: (i) the DGT through the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) for financial services institutions; or (ii) directly to the DGT for other financial services institutions and other entities classified as financial institutions under the CRS. In this regard, the MoF Regulation 108/2025 stipulates that reporting conducted through the OJK must be submitted by no later than 1 August of each year, while reporting submitted directly to the DGT must be submitted no later than 30 April of each year. MoF Regulation 108/2025 mandates that this reporting requirement obligation shall be retroactive. Consequently, the CRS Reporting Financial Institution that fulfilled as the reporting institution prior to January 1, 2018, is also required to report data from 2017.
The reported financial account information shall, at a minimum, include the following details:
- the identity of the financial account holder;
- the financial account number;
- the type of financial account;
- the identity of the CRS Reporting Financial Institutions;
- the balance or value of the financial account;
- income associated with the financial account; and
- the status of joint financial accounts, including the number of holders of such joint financial accounts.
Furthermore, in addition to CRS Reporting Financial Institutions, CARF Reporting CASPs are also subject to the obligation to submit reports containing crypto-asset information. Such information includes details relating to transactions involving: (i) the exchange of crypto-assets for fiat currency or the exchange of one or more crypto-assets for other crypto-assets; and (ii) the transfer of crypto-assets to or from a crypto-asset address or an account owned by a crypto-asset user (including swap transactions). In this matter, such transactions may be conducted by both individual and crypto-asset users’ entity, as regulated under the MoF Regulation 108/2025.
CARF Reporting CASPs are required to submit the relevant transaction information in a report which shall, at a minimum, contain the following:
- the identity of the crypto-asset user;
- the identity of the CARF Reporting CASPs;
- transactions conducted during the relevant calendar year, which may include: (i) transactions involving the exchange of crypto-assets for fiat currency; (ii) transactions involving the exchange of one or more types of crypto-assets; (iii) transfers of crypto-assets to or from a crypto-asset address or an account owned by a crypto-asset user carried out as consideration for goods or services with a value exceeding USD 50,000; and (iv) transfers of crypto-assets to or from a crypto-asset address or an account owned by a crypto-asset user.
With respect to the above reporting obligations, where a financial account holder or a crypto-asset user is subject to tax in more than one country or jurisdiction, the CRS Reporting Financial Institutions or the CARF Reporting CASPs shall submit a report for each of such country or jurisdiction. The CARF Reporting obligation will commence in 2027, covering data from the year 2026.
Conclusion
MoF Regulation 108/2025 was enacted as one of the implementing measures of Indonesia’s commitments following its adoption of the CRS and CARF. MoF Regulation 108/2025 provides the regulatory framework governing the exercise of authority of the DGT. Such authority includes the power of the DGT to receive and obtain information from financial institutions and CARF Reporting CASPs, whether through automatic manners or upon request. With the enactment of MoF Regulation 108/2025, it is expected that efforts to prevent tax avoidance will be strengthened and that the harmonization of cross-border taxation will be enhanced in order to avoid double taxation.
The inclusion of CARF Reporting CASPs to submit the reporting demonstrates the extension of DGT’s authority to encompass the digital ecosystem, including cryptocurrency. This expansion will enable DGT to acquire more data regarding digital ecosystem transactions and enhance transparency in transactions conducted through cryptocurrency.
For Further Information, Please Contact:
MetaLAW, Legal Consultant, Jakarta, Indonesia
general@metalaw.id
