Coordinating Minister For The Economy To The Minister Of Finance Addressed The President At The Palace

The Coordinating Minister for Economic Affairs arrived at the Presidential Palace, Jakarta, Friday (13/12/2024). ANTARA/Fathur Rochman

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto to Minister of Finance Sri Mulyani Indrawati met President Prabowo Subianto at the Presidential Palace, to attend a limited meeting (ratas).

Deputy Minister of Finance Suahasil Nazara arrived at 15.00 WIB, followed by Sri Mulyani who arrived at 15.08 WIB, and Airlangga at 15.12 WIB.

When asked by reporters about the meeting related to the discourse on the implementation of a 12 percent value added tax (VAT), Airlangga said the matter would be discussed.

"It will be discussed first," said Airlangga as quoted by ANTARA, Friday, December 13.

Previously, Sri Mulyani ensured that basic necessities would still be exempt from the imposition of a value added tax (VAT) even though this tax rate rose to 12 percent on January 1, 2025.

"When the 12 percent VAT is implemented, basic necessities will still be 0 percent of the VAT," said Sri Mulyani during a press conference for the KiTa State Budget, Edition December 2024 in Jakarta, Wednesday (11/12).

The Minister of Finance stated that the implementation of the law still maintains the principle of justice, including the issue of VAT 12 percent.

In that context, the increase in VAT rates to 12 percent which has been regulated in the Law on Harmonization of Tax Regulations (HPP) is still being carried out but while paying attention to the principle of justice for the community.

"We are formulating more details, because this is a consequence of the state budget, aspects of justice, purchasing power, and also in terms of economic growth, we need to balance it," he said.