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BTC News – Indonesia Eyes Bitcoin Mining Powered by Renewable Energy
BTC News – The Indonesian government is seriously exploring the potential of Bitcoin as a reserve asset, according to Bitcoin Indonesia, which recently met with top officials to discuss how this digital currency could drive the country’s economic growth. In a revealing post on social media platform X, Bitcoin Indonesia shared that they were invited to the Vice President’s office to present bold ideas, including using Bitcoin mining as a national reserve strategy.
Leveraging Renewable Energy for Bitcoin Mining
One of the key points presented was Indonesia’s advantage in abundant hydroelectric and geothermal resources. These natural assets could power Bitcoin mining operations, creating jobs and stimulating economic activity—similar to strategies seen in other countries adopting Bitcoin. The meeting also focused on Bitcoin education initiatives, with officials recognizing the importance of educating the public about the cryptocurrency’s long-term potential.
Economic Context and Policy Moves
Indonesia, the world’s fourth-most-populous country with over 280 million people, has a GDP of $1.4 trillion, ranking it as the 16th largest economy globally. Unlike countries such as the U.S., Indonesia’s debt-to-GDP ratio remains low at 39%, and inflation is well controlled at 0.76% (as of January 2025), which may impact how urgently Bitcoin is needed as a hedge.
Despite this, Indonesia recently increased taxes on crypto traders and miners. The finance ministry raised income tax rates on crypto sales and doubled the value-added tax on mining activities, signaling a stricter regulatory approach.
Crypto Payment Ban and Real-World Reality
Indonesia has banned crypto payments since 2017, with reinforced warnings in 2023 targeting tourists attempting to pay with cryptocurrencies. However, enforcement seems inconsistent, with reports of Bali real estate listings openly accepting Bitcoin, showing the growing acceptance of crypto in everyday transactions.
