JAKARTA - President Prabowo Subianto was greeted by the enthusiasm of the people who gathered along Jalan Sudirman-Thamrin, Jakarta, after attending the Annual Book Close Meeting with Finance Minister Sri Mulyani.

Around Kempinski Hotel, Thamrin, a group of people who were enjoying the night before the turn of the New Year 2025, surrounded a car that Prabowo was riding while crossing the area after leaving the Ministry of Finance Building.

Prabowo got out of the roof of the car and took the time to greet the people who welcomed him. He shook the hands of the people who gathered and took photos and videos of himself.

"Pak Prabowo, Pak Prabowo," exclaimed the crowd of people welcoming Prabowo as reported by ANTARA, Tuesday, December 31.

Previously, in the Annual Book Close Meeting, Prabowo together with Sri Mulyani emphasized that the 12 percent value added tax (VAT) does not apply to goods and services other than luxury goods and services consumed by the community are located or capable.

"This means that for goods and services that are not classified as luxury goods, there is no increase in VAT, which is still as big as it is now, which has been in effect since 2022," Prabowo said, referring to the old VAT rate, which is 11 percent.

Prabowo said that 12 percent VAT does not apply to goods outside of those that have been subject to the Luxury Goods Sales Tax (PPnBM).

"What is consumed by the community is the community who can afford it. For example, private jets are classified as luxury items used by the upper class of people, cruise ships, yachts, very luxurious houses that are valued above the middle class," explained the President.

The 0 percent VAT rate still applies to goods and services, which are the basic needs of the community, which so far have received tax exemption facilities.

"For service goods needed by many people who are still given VAT exemption, including basic needs, rice, meat, fish, eggs, vegetables, fresh milk, education services, health services, public transportation services, simple homes, drinking water," said Prabowo.

The Head of State also emphasized the government's commitment to always side with the people by creating a fair tax system.

"The government will continue to strive to create a tax system that is fair and pro-people," said the President.


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