Minister of Finance Purbaya Yudhi Sadive revealed that there is a possibility to review the Value Added Tax (VAT) rate, which is currently at 11 percent.
He emphasized that the discourse on reducing this tariff will be studied very carefully and future economic conditions will be one of the main factors in considering the policy.
Purbaya said that until now there has been no final decision regarding the reduction in VAT rates.
"So basically we will see our economic conditions in the future. I need to push for demand too," explained the media crew, Wednesday, October 15.
Purbaya stated that an evaluation of economic growth would be carried out at least until the first quarter of 2026.
He emphasized the importance of prudence so that the policies taken did not have a negative impact, such as swelling the budget deficit.
"I see first, I have to be careful, don't let me drop everything apart, later the deficit will be above 3 percent, so we have to weigh which one is the best," said Purbaya.
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Purbaya added that after the 2026 I-quarter, fiscal conditions would be more clear, so that evaluation of the direction of budget management policies could be carried out more precisely.
"So after the first quarter of next year I will be able to see the system seems to be changing the fiscal policy in terms of managing money like what. If we want to push it, we will push it next to it," he said.
Purbaya said that the situation in support of the government did not rule out the possibility of proposing a decrease in VAT to the DPR.
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