Indonesia eyes Bitcoin: exploring a national reserve strategy
Bitcoin Indonesia has proposed a bold idea to the Indonesian government: leveraging Bitcoin mining as a national reserve strategy to drive economic growth.
Bitcoin Indonesia recently met with officials from the Vice President’s office to discuss the potential benefits of Bitcoin for the country. The presentation explored how Indonesia could use Bitcoin mining to fuel long-term economic strength.
Key focus areas
The discussions covered various aspects, including:
- Bitcoin Mining: Leveraging Indonesia’s abundant hydroelectric and geothermal resources.
- National Reserve Strategy: Exploring Bitcoin as a reserve asset.
- Education Initiatives: Promoting Bitcoin adoption through education.
Indonesia’s economic landscape
Indonesia, the world’s fourth-most-populous country with over 280 million people, has a GDP of $1.4 trillion, making it the 16th largest economy.
Bitcoin Indonesia highlighted how leveraging the country’s renewable energy resources could spur job creation, similar to what has been seen in other countries embracing Bitcoin.
The Bitcoiners also shared Michael Saylor’s prediction that Bitcoin could reach $13 million by 2045 in a base case scenario and $49 million in a bull case.
They emphasized the importance of Bitcoin education initiatives, a view that was seemingly echoed by a representative from the Vice President’s office.
Strategic reserve asset
While Bitcoin’s potential for long-term price growth has attracted nation-states like the U.S. to adopt it as a strategic reserve asset to address debt-to-GDP ratios and hedge against inflation, this pitch might be less relevant for Indonesia, which has a relatively low debt-to-GDP ratio and controlled inflation.
Recent anti-crypto policies
Despite exploring Bitcoin as a reserve asset, Indonesia has recently implemented anti-crypto policies. Crypto trading is allowed, but its use for payments is prohibited. The Finance Ministry recently raised taxes on crypto traders and miners.
Crypto payment ban enforcement
Indonesia has banned crypto payments since 2017, with strict warnings for tourists. However, enforcement appears to be lax, with real-estate listings in Bali openly accepting Bitcoin.
