Meet Jokowi To Discuss Price Increases And VAT, Ketum Hipmi Mardani Maming: Something That Can't Be Avoided

Head of Hipmi Mardani Maming. (Photo: Doc. Press Bureau of the Presidential Secretariat)

JAKARTA - General Chairman of the Central Governing Body of the Indonesian Young Entrepreneurs Association (Hipmi) Mardani H Maming stated that his party understands that the increase in the price of some commodities and the value added tax (VAT) is something that cannot be avoided.

This statement was made by Maming after meeting with President Joko Widodo (Jokowi) at the Presidential Palace in Jakarta, Monday, April 11, 2022.

"If this is a 'simalakama' decision, if we talk from year to year, indeed if you want a holiday, the prices of basic necessities will definitely go up. Especially along with the Russia-Ukraine war, this is something he (President Jokowi) cannot avoid it," said Maming.

Maming does not deny that the policies taken by the government may not make the people happy. However, according to him, all policies cannot please all parties.

Even so, Maming assesses that Jokowi has tried to prosper his people. One of them is by requiring BUMN and regional budgets to be purchased at least 40 percent.

"The important thing is that he really wants to prosper his community and people, through what I said earlier his decision to help MSMEs nationally," he said.

Increase in VAT weighs on entrepreneurs

Previously, the Head of Finance of the Indonesian Young Entrepreneurs Association (Hipmi) Anggawira said that the current increase in basic food prices was due to an increase in demand. However, from the other side of the supply to the market is experiencing obstacles. This causes a price spike.

While the increase in VAT from 10 percent to 11 percent, said Angga, this can't be denied. Although the current conditions are also burdensome for entrepreneurs.

"This is a lot of calculations, the government needs income, it's really hard for entrepreneurs to increase VAT even if it is 1 percent. This is the way the government has thought of, one of which is by increasing the VAT," he told reporters, Sunday, April 10.

According to Angga, when compared to neighboring countries, the 11 percent VAT increase is much lower. This is because the average increase in neighboring countries reaches 15 percent.

"But yes (even though) it looks small but the impact is cumulative," he said.