President Jokowi Confirms 12% Value Added Tax (PPN) Increase, Effective January 1, 2025
Jakarta, CNN Indonesia — President Joko Widodo (Jokowi) has finally broken his silence on the upcoming increase in Value Added Tax (PPN), which will rise to 12% starting January 1, 2025.
Jokowi stated that the tax hike has already been officially set by law, a product of bipartisan efforts between the House of Representatives (DPR) and the government. Therefore, the government is obligated to implement it, as it is bound by the law.
"We’re talking about a harmonization of tax regulations, which has already been approved by the DPR. The government is obligated to carry it out," said Jokowi on Friday (27/12), according to a report by detik.com.
The President assured that the PPN increase has been thoroughly considered. "The government has done its calculations and made thorough considerations. I believe we should support the government’s decision. The government’s decisions have been carefully considered, and they align with the dictates of the law," Jokowi explained.
Jokowi also mentioned that the government has analyzed the potential impact of the tax increase on the public. "Of course, the government has already conducted calculations and made considerations to mitigate these impacts," he said.
The Jokowi administration has confirmed that PPN will indeed increase to 12% starting January 1 next year. This decision is a result of the ratification of Law No. 7/2021 on the Harmonization of Tax Regulations (HPP) under the Jokowi administration.
The impending PPN increase has sparked public backlash, with citizens signing a petition titled "Government, Immediately Revoke the PPN Increase!" to urge President Prabowo Subianto to rescind the 12% PPN.
As of Wednesday (25/12), the petition had gathered over 1.93 million signatures.
(agt/agt)
