Jakarta – Deputy Speaker of the House of Representatives (DPR) Sufmi Dasco Ahmad stated that the government’s plan to increase Value Added Tax (VAT) to 12% is still under observation and review by the DPR.
“Yes, we are indeed monitoring the developments regarding what has been decided through the 2022 Law. Currently, it is under review to determine whether the current situation allows for its implementation. Although the law states that the increase should take effect in January 2025,” Dasco said at the DPR building in Senayan, Jakarta, on Thursday (November 28, 2024).
The daily chairperson of Gerindra asked all parties to wait for the final decision from the government. According to Dasco, the DPR continues to communicate with the government to ensure that the policy remains pro-people.
“Therefore, I urge everyone to be patient. We are conducting a review and will maintain ongoing communication with the government. These discussions and reviews are, of course, aimed at the benefit of the people,” Dasco said.
Previously, Chairman of the Indonesian National Economic Council, Luhut Binsar Pandjaitan, mentioned that the implementation of the 12% VAT might be postponed. This is because the government intends to provide social assistance or stimulus to middle- and lower-income groups first.
According to Luhut, the implementation of the 12% VAT must be accompanied by support for the communities that will be affected. The 12% VAT is planned to take effect on January 1, 2025.
“For the 12% VAT to be implemented, we need to first provide stimulus to economically struggling citizens. It is still being calculated—maybe for two or three months. There are calculations for the middle class as well,” Luhut explained when met at TPS 004, Kuningan Timur, South Jakarta, on Wednesday (November 27).
Given that social assistance will be disbursed first, the policy’s implementation might be delayed. However, the final decision remains in the hands of President Prabowo Subianto.
