Dampak PPN 12 Persen Terhadap Daya Beli Masyarakat

Summary

The Indonesian government's decision to implement a 12% VAT starting in 2025 has sparked public concern, particularly among the middle class. Despite the government's promise of stimulus measures to ease the impact, many believe the policy will increase financial pressures, particularly on basic living costs. Critics argue that the VAT's application to luxury goods and services remains unclear, and the provided incentives, such as electric vehicle subsidies and electricity discounts, are insufficient. The policy's implementation comes amid economic challenges, including inflation and a weakening rupiah, making many fear it will worsen financial instability for everyday citizens.

Takeaways

• 😀 The Indonesian government has enforced a 12% Value Added Tax (VAT) starting from January 1, 2025, despite public opposition.
• 😀 The implementation of the VAT will be accompanied by stimulus measures aimed at mitigating its impact, especially on the middle and lower-income groups.
• 😀 Some categories, like premium food, VIP hospital services, and expensive international standard education, will be subject to the new VAT, though the criteria for these categories are unclear.
• 😀 Public confusion arises around which products and services will fall under the new VAT, and how different industries (such as hospitals and education) will adapt.
• 😀 Businesses are expected to increase service prices due to the administrative complexity of VAT, leading to higher costs for consumers.
• 😀 The government's stimulus packages, including electricity discounts and incentives for electric vehicles, are seen as insufficient and not truly beneficial for the middle class.
• 😀 The 12% VAT is estimated to increase household expenditures by approximately IDR 350,000 per month, potentially contributing to inflation exceeding 4% in 2025.
• 😀 Economic growth in 2025 will be highly influenced by household consumption, and the VAT increase could negatively affect this growth.
• 😀 Millennials and middle-class Indonesians are particularly concerned that the 12% VAT will exacerbate financial struggles, especially when considering the already high cost of living and housing.
• 😀 Despite a 6.5% increase in the national minimum wage in 2025, many people feel that this will not offset the added burden of the 12% VAT.
• 😀 There are calls from the public for a reduction in VAT, with many expressing disappointment that the government has chosen to increase it rather than lowering it like some other countries.

Q & A

What is the main reason for the government's implementation of the 12% VAT (PPN) starting in January 2025?

The government is implementing the 12% VAT to increase state revenue, as part of the Harmonization of Tax Regulations Law, despite the anticipated negative impact on the purchasing power of the middle and lower classes.

How does the government plan to mitigate the impact of the VAT increase on the public?

The government has promised to provide certain stimuli, such as discounts on electricity bills and subsidies for electric vehicles, in an effort to reduce the financial burden on the middle and lower-income groups.

Which goods and services will be subject to the 12% VAT?

The 12% VAT will apply to luxury goods and services, including premium foods, VIP hospital services, and expensive international-standard education.

What concerns have experts raised about the 12% VAT policy?

Experts, including Bimaudistira from Selios, have raised concerns about the ambiguity in determining which goods and services qualify as luxury or premium, and the administrative complexity it creates for businesses and consumers.

How does the 12% VAT affect businesses and consumers?

There are concerns that businesses might raise prices for all goods and services to offset the new VAT, passing the financial burden onto consumers. The complexity of the VAT administration also creates confusion and additional challenges for both businesses and consumers.

How will the increase in VAT impact the average household in Indonesia?

The increase in VAT is expected to add approximately Rp350,000 per month to the average household's expenses, contributing to higher inflation and greater financial strain, especially for middle-class families.

What impact is the VAT increase expected to have on inflation and the overall economy in 2025?

The VAT increase is expected to push inflation above 4% in 2025, alongside challenges such as currency depreciation and geopolitical changes. These factors are likely to hurt Indonesia’s economic growth, with household consumption playing a significant role in the nation's economic performance.

What are the concerns regarding the increase in the minimum wage in 2025 in relation to the VAT policy?

While the minimum wage is set to increase by 6.5% in 2025, many believe this will not be sufficient to offset the financial strain caused by the 12% VAT increase. People are concerned that this wage increase will be rendered meaningless due to the rising cost of goods and services.

How do the younger generation and middle-class families feel about the VAT increase?

The younger generation, particularly those in the 'sandwich generation' (supporting both children and elderly relatives), feel that the VAT increase will worsen their financial situation. Many worry it will prevent them from achieving long-term goals, like homeownership, and make it harder to meet daily living expenses.

What do critics suggest as an alternative to raising the VAT in Indonesia?

Critics suggest that the government should lower the VAT, as some other countries have done, instead of raising it. This would help reduce the financial burden on the public, particularly the middle class, and better support economic growth.