Title: Indonesia‘s PPN Hike to 12%: No Special Subsidies, Minister Assures
Jakarta, Indonesia – Minister of Coordinating Human Development and Culture, Muhaimin Iskandar, or ‘Cak Imin’, has clarified that there will be no special subsidies related to the recent hike in Indonesia’s Value Added Tax (PPN) from 11% to 12%.
Speaking in Jakarta, Cak Imin stated, "There are no special subsidies. The increase in PPN from 11% to 12% has been carefully considered." He explained that the decision was based on a review of which products would or would not be subject to the tax increase, ensuring the economy continues to grow.
The minister clarified that the hike will only affect luxury goods, sparing small and medium-sized enterprises (UMKM) and the tourism sector. "UMKM and tourism, which cater to the daily needs of the people, will not be affected. The increase will target various luxury goods that are non-essential," he said.
Previously, Coordinating Minister for the Economy Airlangga Hartarto emphasized the importance of the PPN increase to 12% for maintaining economic stability, protecting social welfare, and supporting the Asta Cita Presidential program. The goal is to boost national income through this measure.
However, the proposed PPN hike has sparked public opposition. An online petition titled "Government, Cancel the PPN Increase!" was launched on November 19, 2024, while youth demonstrations have been held outside the Presidential Palace in Jakarta to voice their discontent.
