Archbishop of Jakarta Adheres to 12% VAT Hike Policy, Yet Remains Critical

by Chief Editor

Uskup Agung Jakarta Weighs In on PPN Hike Proposal

Jakarta – Ignatius Kardinal Suharyo, the Archbishop of Jakarta, has responded to the government’s plan to increase VALUE ADDED TAX (PPN) to 12 percent. In a press conference at the Cathedral Church of Jakarta, Cardinal Suharyo acknowledged that the decision has been made and the public must abide by it.

However, he emphasized the importance of critical thinking among the public towards government policies. "Regarding PPN, of course, those with expertise in the field won’t stop discussing it. Nevertheless, once the government has made a decision, we can only follow along, but critically," he said.

While accepting the PPN hike, Cardinal Suharyo urged the public to remain critical and consider the impacts and issues that may arise from such policies. "In other words, we should already be following the government, but critically consider the various problems that may emerge from this decision, which we can’t yet predict," he added.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that increasing PPN to 12 percent is crucial for maintaining economic stability, social protection, and supporting President Prabowo Subianto’s "B synchronous Cita" program. The move is expected to boost national income.

Meanwhile, the public backlash against the proposed PPN hike has intensified. An online petition named "Together, People!" titled "Government, Cancel the PPN Increase Immediately!" surfaced on November 19, 2024. Youth protests have also taken place in front of the Presidential Palace against the PPN hike.

In response, DPR Speaker Puan Maharani suggested that the government consider various inputs and evaluate the potential impact on public purchasing power and economic growth. Meanwhile, PP Muhammadiyah Chairman Haedar Nashir called on the government to reconsider the PPN hike, emphasizing the need for fair social policy.

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