VAT 12 Percent Still Discourse, Will Be Discussed After Prabowo Returns To Indonesia

UMKM illustration (ANTARA)

JAKARTA - Deputy Speaker of the House of Representatives for Economic Affairs, Adies Kadir, emphasized that the policy of increasing Value Added Tax (VAT) to 12% by 2025 is still a discourse. The policy will be discussed and decided by President Prabowo Subianto after returning to Indonesia from a series of visits abroad.

"So, we'll just have to wait for the president to come back. Don't make assumptions. We don't have to connotate, there will be an increase like this, that's it. There must be a finance minister if he proposes to the President there are basics," he said, Wednesday, November 20.

Adies ensured that President Prabowo would side with the interests of the community. Moreover, President Prabowo Subianto's government policies will be oriented towards the interests of the community.

"We will see for sure the President in running the government for 5 years, basically it will always not trouble the people, right. Like that," said the deputy chairman of the Golkar Party.

Adies appealed to the public to wait for a definite decision from President Prabowo. According to him, there will be discussions with the DPR if Prabowo has decided.

"We'll just have to wait, not yet (there is an official decision). Of course, if there is, there will also be discussions with the DPR. We'll just have to wait," he added.

Adies explained, if the VAT later increases, it must have considerations and will be calculated carefully and calculated so as not to harm the people.

"So, even if there is an increase, it will definitely be regulated properly. However, this is not yet, it is still waiting for the president. So we'll just have to wait and see what happens later," concluded Adies.

Previously, the Ministry of Finance (Kemenkeu) announced the readiness to implement an increase in value added tax rates (VAT) from 11% to 12%. Minister of Finance Sri Mulyani Indrawati conveyed this in a meeting with Commission XI of the DPR, Wednesday (13/11/2024).

"We have discussed it with ladies and gentlemen, then there is already a law. We need to prepare it so that it can be carried out, but with a good explanation," said Sri Mulyani.