New Tax Regulation in Indonesia Eliminates Income Tax on Gold Bullion Purchases Under IDR 10 Million
From August 1, 2025, people who buy gold bullion from Bullion Banks in Indonesia do not pay a tax of 0.25% if the purchase is IDR 10 million or less. The change simplifies tax rules for gold and helps buyers and businesses.
Background and Aim of the Regulation
The government made this change after reforms in the financial sector under Law Number 4 of 2023 on Strengthening and Development of the Financial Sector (P2SK Law). This law covers many gold-related tasks such as storage, financing, trading, and holding. Financial institutions called LJK Bullion now handle these tasks.
Before, gold transactions often had two layers of tax. Sellers lost 0.25% and buyers, especially Bullion Banks, lost up to 1.5%. This extra tax made deals hard and hurt both buyers and sellers.
The new rule sets clear roles. It stops paying tax twice and clears who must pay tax on gold trading.
Details of the New Tax Guidelines: PMK 51 and PMK 52 of 2025
The rules come from two Minister of Finance Regulations dated July 25, 2025:
PMK 51/2025: Bullion Financial Institutions (LJK Bullion) now collect the 0.25% ITA 22 tax on imported gold bullion deals. When individuals sell gold bullion to LJK Bullion for IDR 10 million or less, no tax is taken.
PMK 52/2025: This rule covers taxes on gold trading. It removes the ITA 22 tax in these cases:
- When businesses sell to final buyers;
- When small and medium businesses under the Final Income Tax scheme sell;
- When taxpayers hold a Certificate of Exemption for ITA 22;
- When sales are made to Bank Indonesia;
- When trades occur in digital physical gold markets;
- When sales go to Bullion Financial Institutions (LJK Bullion).
These rules mean that retail consumers who buy gold bullion from Bullion Banks do not pay the ITA 22 tax if the deal is at or under IDR 10 million. For deals over this sum, the 0.25% tax remains.
Impact on Investors and the Gold Market
Small investors who buy gold bullion may feel less financial strain now. More retail deals may occur. Bullion Banks and LJK Bullion institutions may see higher volumes in their transactions. This change may boost the market and bring more buyers into gold trading.
The tax rule now ties in with wider reforms in the financial sector. It helps modernize Indonesia’s gold market and supports growth in digital gold markets. The changes may also set the stage for new ways of trading gold as physical assets become linked to digital systems.
Looking Ahead: Taxation and Digital Asset Markets
The clear limit for small gold purchases and new rules for digital gold trading give Indonesia a strong place in linking old and new financial practices. Investors and others will watch closely as trading numbers and market moves react to the tax change. Removing extra layers of tax may boost trust in both traditional gold and its digital versions. This may guide future tax rules for other assets in Indonesia.
For More Information
Officials from the Directorate General of Taxes and the Ministry of Finance have shared these updates. Detailed rules are available on their websites. Gold traders, Bullion Banks, and buyers should check with official sources to meet all requirements.
This article is based on the announcement from the Ministry of Finance and remarks by Director General of Taxes Bimo Wijayanto, reported on July 31, 2025. The new tax rules take effect on August 1, 2025.
