TVR 120 - DPR RI : Minta Pemerintah Tunda Kenaikan PPN 12%

Summary

In the midst of Indonesia's challenging economic conditions, including declining middle-class numbers and deflation, Indonesian Parliament member Edi Suoparno urges President Prabowo and Vice President Gibran to delay the planned 12% VAT increase set for 2025. He highlights the negative impact of the tax hike on the struggling middle class and the poor, suggesting it could worsen the already fragile economy. Edi proposes alternative measures, such as offering tax relief and incentives to stimulate productivity and stabilize prices, to aid the economic recovery.

Takeaways

• 😀 Edi Suoparno, a member of the Indonesian Parliament, urges the government under Prabowo and Gibran to delay the planned 12% Value Added Tax (PPN) increase, initially set for 2025.
• 😀 According to BPS data, the middle class in Indonesia has decreased from 57 million people in 2019 to 48 million in 2024.
• 😀 Indonesia has been experiencing deflation for five consecutive months since May 2024.
• 😀 Many Indonesians are also facing job layoffs across various sectors, adding to the economic difficulties.
• 😀 Edi argues that the 12% PPN increase will worsen the economic situation, particularly for the middle and lower classes.
• 😀 He proposes that delaying the PPN increase could help strengthen the purchasing power of the middle class and speed up economic recovery.
• 😀 Edi emphasizes the importance of stabilizing prices to prevent further inflation and keep costs manageable for the public.
• 😀 He calls for the government to implement measures such as tax relief on housing and other incentives to help stimulate productivity and support citizens.
• 😀 Edi believes that such actions would assist in reviving the middle class and enhance economic stability for Indonesia's lower-income groups.
• 😀 The government is urged to focus on keeping inflation under control to prevent further economic strain on households.
• 😀 The report concludes with a reminder that the focus is on practical measures to support the public and prevent further economic downturn.

Q & A

What was the main point made by Edi Suoparno regarding the planned increase in PPN?

Edi Suoparno urged the Indonesian government to delay the planned increase in the Value Added Tax (PPN) from 11% to 12%, which was set to begin in early 2025, due to the economic difficulties faced by the population.

Why does Edi Suoparno believe that raising the PPN would be harmful?

He believes that the increase in PPN would worsen the economic situation, especially for middle- and low-income households, who are already struggling due to inflation, deflation, and job losses in various sectors.

How has the middle class population in Indonesia changed according to the script?

The middle class population in Indonesia has decreased from around 57 million in 2019 to approximately 48 million in 2024, as reported by Edi Suoparno.

What economic issues are the Indonesian people currently facing, according to the transcript?

The Indonesian people are facing issues such as deflation (which has been ongoing since May for five months), widespread layoffs in various sectors, and a decline in the middle class.

What alternative solutions does Edi Suoparno propose to help the economy recover?

Edi suggests delaying the PPN hike and focusing on stabilizing prices, preventing further inflation, and providing fiscal incentives such as tax breaks for housing and other measures to boost productivity.

What is the potential benefit of postponing the PPN increase, according to Edi?

Postponing the PPN increase could help strengthen the purchasing power of the middle class, stimulate economic recovery, and prevent further strain on low-income groups.

What specific fiscal incentives does Edi Suoparno mention in his proposal?

Edi suggests providing tax relief for housing and other fiscal incentives that could enhance productivity and support economic growth.

How has deflation impacted the economy in Indonesia?

Deflation has been negatively impacting the economy by reducing the purchasing power of the people and slowing down economic activity, with deflation having persisted for five consecutive months since May.

Why does Edi Suoparno emphasize the need to control inflation?

Edi emphasizes controlling inflation as a way to stabilize prices and prevent further economic hardship, especially for those already facing financial difficulties.

How does Edi Suoparno view the role of the government in addressing the current economic crisis?

Edi views the government as having a crucial role in addressing the crisis by implementing policies that support the economy, stabilize prices, and provide fiscal relief to help citizens cope with the economic downturn.