Tarif PPN Naik Jadi 11%, Ibu Rumah Tangga: Buat Kami Sangat Terasa Sekali | IBF tvOne

Summary

The video discusses Indonesia's recent VAT increase from 10% to 11%, effective from April 1. Finance Minister Sri Mulyani defends the decision as necessary for strengthening the country's tax foundation, while economist Faisal Basri questions the timing, given the slow post-pandemic recovery. Household representatives express frustration as essential goods like oil, gas, and eggs see price hikes, affecting everyday budgets. Experts suggest alternative revenue sources, like taxing coal exports, to ease the burden on consumers. The conversation blends economic analysis with personal experiences, highlighting the tension between policy decisions and the challenges faced by citizens.

Takeaways

• 😀 The recent increase in the Value-Added Tax (VAT) to 11% has added to the financial burden on the public, especially with rising prices of essential goods and services.
• 😀 The Minister of Finance, Sri Mulyani, explained that the VAT hike aims to create a fairer and stronger tax system, pointing out that the global average VAT rate is around 15%.
• 😀 The new VAT increase is expected to contribute an additional 40 trillion rupiahs to state revenue, but there are concerns that it could further strain the purchasing power of the public.
• 😀 Consumer spending, which constitutes 54% of Indonesia's economy, is under pressure as essential goods like fuel, eggs, and cooking oil have seen significant price increases.
• 😀 There are concerns that the VAT hike could drive inflation, especially since the tax applies to end consumers, affecting household budgets significantly.
• 😀 Economists have raised questions about the timing of the VAT increase, particularly as the economy is still recovering from the pandemic and global issues like the Russia-Ukraine conflict.
• 😀 The government's expenditure, especially in paying interest on debt (about 20% of the national budget), has been a heavy burden, impacting other areas of economic recovery.
• 😀 The discussion highlighted that while VAT is a significant revenue generator, it could push more people to tighten their budgets and reduce their consumption, especially for non-essential goods.
• 😀 Inflationary pressures are also linked to supply chain issues and global factors, such as the rising cost of fertilizers and the disruption caused by the war in Ukraine.
• 😀 There's a suggestion to explore alternative tax sources, such as the export tax on coal, which has not been effectively utilized in the past, to reduce reliance on VAT increases.

Q & A

What is the main reason behind the government's decision to increase the Value Added Tax (PPN)?

The government increased the Value Added Tax (PPN) from 10% to 11% in order to create a more equitable and robust tax system. This policy aims to strengthen Indonesia's fiscal foundations, as the global average PPN rate is around 15%.

How does the PPN increase impact Indonesia’s economy, according to the experts in the discussion?

Experts explain that the PPN increase could lead to reduced purchasing power for the general population, especially among lower-income households. While it may boost government revenue, it could contribute to higher inflation and negatively affect consumer spending.

How does the PPN increase specifically affect household budgets during Ramadan?

During Ramadan, many essential goods such as cooking oil, eggs, and gas have seen price increases, exacerbating the financial strain on households. For instance, eggs have become more expensive, and the price of gas has risen significantly, adding pressure to the household budgets during this time of increased demand.

What are some examples of price increases mentioned by the housewife in the interview?

The housewife mentions several price hikes, including increases in the price of cooking oil, gas, eggs (from around 20,000 IDR to 27,000-28,000 IDR per kilogram), and meat, which have become more expensive.

What is the anticipated effect of the PPN increase on consumer behavior, according to Faisal Basri?

Faisal Basri warns that the PPN increase could lead to reduced consumer spending, particularly among households that are already struggling with rising prices. This may slow down the economic recovery, as consumption is a significant driver of economic growth.

How do experts suggest addressing the challenges posed by the PPN increase?

Some experts propose delaying the PPN increase or exploring alternative ways to raise government revenue, such as taxing coal exports, which could help balance the loss in revenue from the PPN increase while avoiding further economic strain on the population.

How does the current inflation situation impact the purchasing power of households?

Current inflation is reducing the purchasing power of households, particularly for those with fixed incomes or low wages. With prices rising faster than wages, many families are finding it harder to meet their daily needs and manage household expenses.

What specific goods or services have seen significant price hikes, as mentioned by the housewife?

Significant price hikes have been noted in basic commodities like eggs, cooking oil, gas, and meat. The housewife also mentions that household budgets are being stretched as even everyday purchases, like vegetables and rice, are becoming more expensive.

What effect does the PPN increase have on the retail sector, as mentioned by the retail business representatives?

The retail sector, particularly supermarkets, is seeing price increases across various goods. This is affecting consumer behavior, as people are spending more on essentials and may cut back on non-essential purchases due to the increased costs of basic goods.

How do government officials view the fairness of the PPN increase, especially concerning different income groups?

Government officials acknowledge that the PPN increase affects all consumers, regardless of income. While it’s part of a broader tax reform, the increase may feel unfair to lower-income households, as they spend a larger proportion of their income on basic goods that are subject to the tax.