Keterangan Pers Presiden Prabowo: Tarif PPN 12% Hanya Barang & Jasa Mewah, Jakarta, 31 Desember 2024

Summary

In this address, an Indonesian government official discusses the country’s financial management amidst global challenges, focusing on the upcoming VAT increase from 11% to 12%. The rise will apply only to luxury goods and services, while essentials will remain exempt. The official emphasizes the government’s commitment to fair taxation and introduces a 38.6 trillion IDR stimulus package to support citizens, including aid for low-income households, tax relief, and subsidies for key sectors. The speech ends with a message of optimism for the New Year, reassuring the public of Indonesia’s resilience and future growth.

Takeaways

• 😀 The government is committed to managing Indonesia's finances prudently despite global economic challenges.
• 😀 The 2024 fiscal year budget is being managed carefully to control the country's deficit while addressing global uncertainties.
• 😀 The VAT (PPN) rate in Indonesia is increasing from 11% to 12% starting January 1, 2024, as mandated by the 2021 Tax Harmonization Law.
• 😀 The VAT increase to 12% will only apply to luxury goods and services, not basic needs or essential goods.
• 😀 Luxury goods subject to the VAT increase include private jets, yachts, and luxury homes.
• 😀 Goods and services that are considered basic needs, such as rice, eggs, vegetables, and healthcare services, will remain exempt from VAT or have a 0% rate.
• 😀 The government has introduced a stimulus package worth IDR 38.6 trillion to support the public and the economy, including subsidies for essential goods and services.
• 😀 A 50% discount on electricity bills is available for customers with a maximum power capacity of 2,200 volts.
• 😀 The government is offering tax incentives for workers with monthly salaries up to IDR 10 million and for MSMEs with annual turnover below IDR 500 million.
• 😀 The government remains committed to creating a fair and people-centered tax system, ensuring that fiscal policies do not negatively impact the public's purchasing power.

Q & A

What was the purpose of the meeting mentioned in the transcript?

The meeting was focused on the closing of the 2024 fiscal year, where the Minister of Finance and other government officials presented an overview of the execution of the State Budget (APBN) for 2024 and discussed fiscal policies.

What is the significance of the tax policy change discussed in the transcript?

The transcript discusses the planned increase in the Value Added Tax (VAT) rate from 11% to 12%, as mandated by the Harmonized Tax Regulations Law of 2021. This increase is meant to be gradual and aims to avoid significant impacts on public purchasing power, inflation, and economic growth.

What impact does the global economic situation have on Indonesia’s financial management?

Despite global challenges such as uncertainty, rising commodity prices, and pressures on the global economy affecting Indonesia’s revenues, the country has managed to prudently and wisely manage its national finances, controlling the fiscal deficit within a cautious and manageable range.

How does the Indonesian government plan to address concerns over the VAT rate increase?

The government has emphasized that the VAT rate increase from 11% to 12% will only apply to luxury goods and services consumed by the wealthier segments of society, such as private jets, yachts, and luxury homes, while essential goods and services will remain unaffected.

Which specific items will be impacted by the increase in VAT?

The increase in VAT applies to luxury goods and services, such as private jets, yachts, luxury homes, and other high-end items typically consumed by wealthier individuals.

Which goods and services will remain exempt from the VAT increase?

Goods and services that are considered basic necessities, such as rice, meat, fish, eggs, vegetables, fresh milk, education services, healthcare services, public transportation, and drinking water, will remain exempt from the VAT increase and continue to be subject to 0% VAT.

What additional economic support measures has the government introduced?

The government has introduced a stimulus package worth 38.6 trillion IDR, which includes food aid for 16 million recipients, discounts on electricity bills, tax incentives for certain industries, and exemptions from income tax for small businesses with annual revenue under 500 million IDR.

What does the government's tax policy emphasize?

The government's tax policy emphasizes fairness and prioritizes the welfare of the people, aiming to protect public purchasing power and promote economic equity, particularly by reducing the burden on essential goods and services.

What is the significance of the government's gradual VAT increase policy?

The gradual increase in VAT, from 10% to 11% in April 2022 and from 11% to 12% in January 2024, is designed to avoid sudden shocks to the economy, ensuring that it does not negatively impact consumer purchasing power or inflation.

How does the government plan to balance fiscal policy with the needs of the population?

The government plans to balance fiscal policy by prioritizing policies that protect the lower-income population and provide necessary subsidies while gradually increasing tax rates on luxury goods. This approach aims to ensure that the economic burden is not disproportionately placed on the general public.