"PDIP Politician Surprises by Posting Jokowi’s Stance on the 12% PPN Tax Bill"

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Indonesian Politician Sparks Debate with Surprising Exposure of Presidential Command

Jakarta, CNN Indonesia — PDIP politician Guntur Romli has stirred the pot by publicly releasing a presidential letter (Surpres) from President Joko Widodo (Jokowi), dated May 5, 2021, urging the House of Representatives (DPR) to expedite discussions on revising Law Number 6 of 1983 concerning General and Procedural Provisions of Taxation. This Surpres, numbered R-21/Pres/05/2021, was prioritized by Jokowi and entrusted to the Minister of Finance and Minister of Law and Human Rights for further discourse.

The proposed revision of Law Number 6 of 1983, as outlined in the Surpres, suggests a Value Added Tax (PPN) rate of 12%. However, the draft also allows for flexibility in this rate, with a range of 5% to 15%.

Following Guntur’s revelation, the proposed revision was later passed by the DPR and the government, becoming Law Number 7 of 2021 on Harmonization of Tax Regulations (HPP), officially enacted on October 7, 2021.

The law’s deliberation process took approximately three months, culminating in its approval at the first level on September 29, 2021. Eight political party factions in the DPR voted in favor of its immediate enactment in a plenary session. These factions were PDIP, Gerindra, Golkar, PAN, Demokrat, NasDem, PKB, and PPP, with PKS being the only party opposed.

Guntur criticsmmed the government’s stance on maintaining a 12% PPN rate, asserting that it could have been reduced to 5% given the current economic conditions. He questioned the government’s adamancy in increasing the rate despite the law providing for flexibility.

The disclosure of this presidential letter has sparked a heated debate among political party elites in parliament, with Gerindra, the party of President Prabowo Subianto, accusing PDIP of betraying their principles. Gerindra expressed confusion over PDIP’s sudden opposition to a 12% PPN rate, considering they played a role in the passage and enactment of the HPP law.

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