VAT Will Increase To 12 Percent, The Minister Of Manpower Said He Had Not Discussed The Details To The 2025 UMP

Minister of Manpower (Menaker) Yassierli. (Photo: Aris Nurjani/VOI)

JAKARTA - Minister of Manpower (Menaker) Yassierli said that his party was still working on the 2025 Provincial Minimum Wage (UMP) formula by considering various things.

"There are many (considerations)," he told the media crew after the Social Security Summit 2024, Tuesday, November 26.

However, Yassierli said that his party had not discussed in more detail regarding the consideration of increasing the value added tax (VAT) to 12 percent in 2025 at the UMP next year.

"I haven't discussed VAT yet, maybe the VAT might be the Ministry of Finance," he explained.

Yassierli targets the 2025 UMP formula to be completed by the end of November or no later than early December 2024.

"The real target is that by the end of the month the formula will come out," he said.

"End of this month or early next month," he added.

However, Yassierli said that until now the 2025 UMP formula is still in the discussion stage and progress has been reported to President Prabowo Subianto.

"I have met the President to report progress and listen to directions from him," he explained.

Therefore, Yassierli said that his party still had to finalize and formulate this in accordance with the direction of President Prabowo Subianto.

"Of course I still have to finalize it later, I'm still waiting, so let us first formulate according to his direction," he said.

In addition, Yassierli said that after completing the finalization of the 2025 UMP formulation, it would be reported directly to President Prabowo Subianto before distributing the Minister of Manpower Regulation (Permenaker) to all governors.

"We will meet him for the last time after that, we will issue a ministerial regulation," he explained.