Indonesia is weighing the possibility of adopting Bitcoin as a national reserve asset, signaling a major shift in its stance toward digital assets. According to Bitcoin Indonesia, a prominent local group, representatives were recently invited to present the idea at the Vice President’s office.

The proposal includes leveraging Indonesia’s vast hydroelectric and geothermal resources to support national Bitcoin mining operations. The group believes this move could create jobs, fuel long-term economic growth, and position Indonesia as a leader in digital finance. They also emphasized the need for Bitcoin education, which a representative from the Vice President’s office supported.

Indonesia, the fourth-most-populous country with over 280 million people and a $1.4 trillion economy, could significantly influence the global crypto narrative. Bitcoin Indonesia even referenced MicroStrategy founder Michael Saylor’s forecast that Bitcoin could hit $13 million by 2045 in a base case, or $49 million in a bull case.

However, the country’s broader crypto policy remains complicated. While crypto trading is legal, its use for payments has been banned since 2017, with the government reaffirming strict enforcement in 2023. Despite this, reports from Bali suggest the rule is not tightly enforced, with some businesses openly accepting Bitcoin.

Adding to the tension, Indonesia’s Finance Ministry recently hiked taxes on crypto activities. Income tax on local crypto trades more than doubled to 0.21%, while foreign exchange trades now face a 1% tax. Meanwhile, VAT on mining operations doubled to 2.2%.

Although Indonesia’s debt-to-GDP ratio remains healthy at 39% and inflation is just 0.76%, exploring Bitcoin as a strategic reserve could align the nation with other forward-looking economies seeking digital asset hedges.