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Colomadu Home Emerges as Jokowi’s Haven After Leaving Indonesia’s Presidency

by Chief Editor
written by Chief Editor

Title: Indonesian President Joko Widodo Receives Retirement Home from the State

Article:

In a tradition followed for each outgoing president, Indonesia‘s seventh president, Joko Widodo, has been gifted a retirement home by the state. The home, located in Jalan Adi Sucipto, Desa Blulukan, Colomadu, Karanganyar, Jawa Tengah, was chosen by Jokowi himself. This allocation is not only a benefit stipulated in the laws of Indonesia but also a well-established practice for former presidents and vice presidents.

The retirement home benefit is rooted in the Indonesian Constitution, specifically in theLaw Number 7 of 1978, which dicates that a former president or vice president who leaves office honorably is entitled to a suitable residence equipped with facilities and a state-owned vehicle with a driver.

The presidential regulation (Perpres) No. 52 of 2014 further details these benefits, stating that a former president or vice president is entitled to only one residence, regardless of whether they served more than one term.

President Joko Widodo joins a line of predecessors who have received retirement homes. Soeharto received a home in the TMII area, Gus Dur was given land in Kuningan, Megawati received a home in Menteng, and SBY was gifted a home in Setiabudi.

The president’s retirement home spans 12,000 square meters, initially planned to be 9,000 square meters but later expanded. This extension, according to Setya Utama, Secretary of the Ministry of State Secretariat (Kemensetneg), was due toextra land remaining, which was incorporated into the final plan.

The property, valued at around IDR 10-12 million per square meter currently, was purchased with a Rp 5 billion payment for the transfer of land ownership rights. Additionally, the retirement home can be bequeathed to the president’s heirs.

Groundbreaking and Construction Updates

The groundbreaking ceremony for the retirement home took place in July 2024, attended by Jokowi’s family members but not the president himself. The event was private, with local officials not invited. The construction is being carried out by PT Tunas Jaya Sanur, a Bali-based contracting company with a history of high-profile projects.

As of October 2024, the foundation of the residence was completed, with preparations ongoing for the final structure. The home is expected to be ready by December 2024, though it may not be fully completed when Jokowi’s term ends on October 20, 2024.

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Prabowo Urges Reversal of PPN Hike to 12%, Here’s How to Make It Happen

by Chief Editor
written by Chief Editor

** området

Widespread protest and a petition signed by nearly 200,000 people have been sparked by plans to increase Value Added Tax (VAT) to 12% starting in 2025. The move, stipulated in Law No. 7 of 2021, or the Law on Tax Organization Harmonization (HPP), has drawn fierce opposition from citizens who argue that it will disproportionately impact lower-income individuals and stifle economic recovery.

The Indonesian government, however, has stood firm, stating that the VAT increase is crucial for balancing the state budget and that several stimulus packages are in place to maintain household purchasing power temporarily. Nevertheless, demands to revoke the VAT increase remain loud and clear.

legal expert weighs in

Mhd Zakiul Fikri, the director of Hukum at the Center of Economic and Law Studies (Celios), believes that the government should swiftly reconsider the VAT hike due to the overwhelming backlash. He presents several scenarios that could alleviate the situation:

  1. Adjusting the VAT rate: As stipulated in the HPP Law, the VAT rate can be adjusted between 5% and 15%, providing a range of possibilities for review and reduction.

However, Zakiul notes that the current legal framework may cause confusion, as the criteria for determining the 5% to 15% range are ambiguous. Moreover, any changes would require joint implementation with the House of Representatives (DPR), which could prove to be a lengthy and complex process, given the approaching deadline of January 2025.

CALL FOR AN EMERGENCY REGULATION

Given these challenges, Zakiul proposes that President Prabowo Subianto initiate an emergency regulation, or Peraturan Pemerintah Pengganti Undang-Undang (Perppu), to circumvent the impending VAT increase. He argues that Perppu has been employed in the past, including by President Joko Widodo (Jokowi) in 2017, to address urgent fiscal matters.

A RARE SHOW OF UNITY

Unusually, Zakiul’s recommendation aligns with that of Hadi Poernomo, a former director-general of taxation at the Ministry of Finance and former chairman of the Supreme Audit Agency (BPK). Hadi also urges the government to revoke the VAT increase, citing its potential impact on low-income households and small businesses. He suggests that the VAT rate could be reverted to 10% through another decree.

The backdrop to this debate is a looming budget crisis. According to the 2025 State Revenue and Expenditure Budget, the government’s reliance on VAT for revenue has surged to 43.2%, raising concerns about the potential consequences of lowering the VAT rate.

Alash, the inevitable?

As the clock ticks down towards January 2025, the debate over the VAT increase continues to intensify. With the DPR currently in recess until mid-January, the focus turns to the government and President Prabowo to address the potential economic fallout of this contentious fiscal policy.

(End/rrd)

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Understanding the 12% PPN on Rice: A Guideline for Consumers

by Chief Editor
written by Chief Editor

Headline: Indonesia Spared From New PPN Rate; Rice Among Exempted Commodities

Subheading: National Food Agency (NFA) assures consumers that staple food items, including locally produced rice, will not bear the increased 12% PPN rate.

Article:

In a recent announcement, the National Food Agency (NFA) has clarified that Indonesia’s staple food items, particularly locally produced rice, will not be subject to the impending 12% Pajak Pertambahan Nilai (PPN) tax increase. The new PPN rate, set to take effect in 2025, will not apply to strategic food commodities, as confirmed by NFA Head, Arief Prasetyo Adi.

"We understand the significance of rice in Indonesia’s dietary landscape and have ensured that it remains exempt from the PPN increase," Adi explained in a written statement, obtained on Wednesday (25/12/2024).

The exemption extends to locally produced rice, including special varieties like aromatic rice. However, imported rice like the premium ‘Shirataki’ from Japan will be subject to the increased 12% PPN rate, as confirmed by Coordinating Minister for Food Zulkifli Hasan (Zulhas). This is to ensure that the increased tax burden falls primarily on luxury or imported goods, rather than basic commodities.

The NFA has submitted a proposal to the Ministry of Finance, suggesting that the 12% PPN rate should only apply to specific imported rice varieties that are not produced domestically. This stance aligns with the regulations outlined in Peraturan Badan Pangan Nasional (Perbadan) No. 2/2023, which categorizes rice into ‘prime’ and ‘medium’ variants based on their degree of wholesomeness and broken kernels.

"Rice, particularly premium varieties, is widely consumed and distributed across all market sectors," said Adi. "The government is taking steps to ensure it is not classified as a luxury good, thereby avoiding increased PPN charges."

PPN is a form of value-added tax that is levied on goods and services in Indonesia. The 1% increase, from 11% to 12%, is expected to generate additional state revenue while maintaining Indonesia’s competitiveness in the global market.

Citations: (rrd/rrd)

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Revealed: Only Certain Types of Rice Are Subject to PPN

by Chief Editor
written by Chief Editor

Headline: Indonesia‘s National Food Agency Clarifies Upcoming PPN Changes, Ensuring No Tax Hike on Key Domestic Rice

Subheadline: Rice consumers can breathe easy as the government ensures no tax increase on locally produced staple, targeting only imported and premium varieties.

Article:

The Indonesian government has moved to reassure consumers that its plan to increase the Value Added Tax (PPN) from 11% to 12% next year will not affect locally produced staple rice. The National Food Agency (NFA) confirmed that rice will remain exempt from the tax hike, with only certain imported and premium varieties set to be impacted.

Arief Prasetyo Adi, head of the NFA, explained that the PPN increase will not apply to strategic staple foods, particularly domestic rice. He clarified that the 12% tax will only be applied to specific imported rice types, mainly those intended for commercial use, such as in hotels and restaurants.

"Only special imported rice, like that used for hotels or restaurants, will face the 12% PPN. For instance, premium rice is typically imported because it can’t be produced locally. However, we’re ensuring that local aromatic rice varieties are tax-exempt to support our farmers," Adi stated in a written statement.

The qualification of rice types is defined in the National Food Agency Regulation No. 2/2023, which categorizes rice into general, premium, and medium grades based on milling quality and broken grains.

In line with this, the NFA has proposed to the Ministry of Finance that the PPN increase should only apply to certain imported rice types not produced domestically, as per Article 3(5) of Perbadan 2/2023.

Adi further highlighted the popularity and widespread distribution of premium rice, stating that it’s not considered a luxury good and will remain exempt from the PPN increase. Additionally, he revealed that the government plans to distribute medium-quality, high-standard rice through the Food Logistics Agency (Bulog) to 16 million low-income households starting January and February next year.

In a broader context, the government has announced a stimulus package to counterbalance the PPN increase, including a rice assistance program for 16 million beneficiaries. Each month, Perum Bulog will distribute 160,000 tons of rice to these recipients, as mandated by the NFA.

The number of beneficiaries has been adjusted to reflect a decrease in the poverty rate, which stood at 25.22 million people in March 2024, down from 26.81 million in March 2023. The program will target the poorest and most vulnerable segments of society, including the elderly and female household heads living in poverty.

Other related programs, such as the Free Nutritious Meal program and the Rice Price Stabilization and Supply Support program, will continue to run in 2025. The latter program will distribute 150,000 tons of rice monthly in January and February.

Watch this video for more info: Government Allocates IDR 265.6T for PPN Incentives on Basic and Educational Materials

(Rrd/rrd)

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Taxes to Expect When Buying a New Motorcycle in 2025

by Chief Editor
written by Chief Editor

Title: The Complete Guide to Taxes When Buying a New Motorcycle in 2025

Buying a new motorcycle in 2025? Here’s a comprehensive guide to help you understand the taxes you’ll need to pay, ensuring a smooth and informed purchase process.

1. Motor Vehicle Tax (PKB)

The first tax to consider is the Motor Vehicle Tax (PKB), which is levied on the ownership of motor vehicles. As of January 5, 2025, the PKB rate is capped at a maximum of 1.2% for the first vehicle ownership. In Jakarta, the PKB rate for personal vehicles is set at 2% for the first ownership, with a maximum of 6% for the fifth vehicle or more. For vehicles registered under a company or organization, the rate is 2%. Jakarta, being a city without kabupaten, does not apply PKB discount.

2. Motor Vehicle Transfer Tax (BBNKB)

Motorcycles are also subject to the Motor Vehicle Transfer Tax (BBNKB), which is imposed upon the transfer of ownership of a motor vehicle. The BBNKB rate is set at a maximum of 12% according to the same law, but for provinces not divided into kabupaten/kota, the rate can go up to 20%. In Jakarta, the BBNKB rate is set at 12.5%, without applying any discount.

3. Value Added Tax (PPN)

Motorcycles will definitely be subject to Value Added Tax (PPN) at a rate of 12%. The government has stated that motorcycles and cars will be taxed like usual, without any incentives.

4. STNK, TNKB, BPKB, and SWDKLLJ Fees

The fees for STNK (Vehicle Registration Certificate), TNKB (Vehicle Ownership Certificate), BPKB (Motor Vehicle Ownership Certificate), and SWDKLLJ (Motorcycle Compulsory Insurance) are as follows:

  • STNK: Rp 100,000
  • TNKB: Rp 60,000
  • BPKB: Rp 225,000
  • SWDKLLJ (for motorcycles with a capacity of 50 cc to 250 cc): Rp 32,000

5. PKB Discount

Starting January 2025, motor vehicles will be subject to a PKB discount. The PKB discount is a discount applied by kabupaten/kota on the base PKB rate, set at 66% of the total PKB due. The calculation is done by multiplying the 66% rate by the total PKB due.

6. BBNKB Discount

Similarly, a BBNKB discount will also be applied, with the same rate of 66% on the total BBNKB due. The calculation is done by multiplying the 66% rate by the total BBNKB due.

PPnBM Exemption

It’s worth noting that not all motorcycles are subject to PPnBM (Excise Duty). Only motorcycles with a capacity above 250 cc are considered for PPnBM.

With this comprehensive guide, you’ll be well-equipped to navigate the tax landscape when purchasing a new motorcycle in 2025. Happy riding!

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Top 7 Vehicle Ownership Taxes to Expect in 2025

by Chief Editor
written by Chief Editor

Headline: Navigating 2025’s Vehicle Tax Landscape: A Comprehensive Guide

Subheading: Understand the upcoming changes and components of vehicle taxes in Indonesia, effective from 2025.

Article:

Embarking on a new vehicle purchase journey in 2025? Brace yourself for the array of taxes that come with it. From Pajak Kendaraan Bermotor (PKB) to Pajak Penjualan atas Barang Mewah (PPnBM), here’s a detailed breakdown of the taxes you’ll need to understand and prepare for.

1. Pajak Kendaraan Bermotor (PKB)

PKB is a tax levied on the ownership and/or possession of motor vehicles. As a provincial tax, its rates vary depending on the region. Here’s what you need to know:

  • The maximum PKB rate for the first ownership is set at 1.2% (Undang-Undang No. 1 Tahun 2022), down from the previous maximum of 2%.
  • In Jakarta, the PKB rate for personal vehicles is set at 2% for the first ownership, with a maximum of 6% for the fifth vehicle and beyond. For vehicles registered under businesses, the rate is also 2%.

2. Bea Balik Nama Kendaraan Bermotor (BBNKB)

BBNKB is a tax imposed on the transfer of ownership of motor vehicles due to agreements between parties, unilateral actions, or circumstances resulting from sales, exchanges, gifts, inheritances, or incorporations into business entities.

  • The maximum BBNKB rate is set at 12% (Undang-Undang No. 1 Tahun 2022). However, for provinces not divided into regencies/cities, the maximum rate is 20%.

3. Pajak Pertambahan Nilai (PPN)

From 2025, PPN will be levied at a rate of 12% on luxury goods and services, including vehicles. This tax will replace the current Pajak Penjualan atas Barang Mewah (PPnBM) for motor vehicles.

4. Pajak Penjualan atas Barang Mewah (PPnBM)

PPnBM is currently imposed on luxury goods, including most types of motor vehicles, with varying tax rates. Motorcycles with an engine capacity above 250cc are also subject to PPnBM.

5. Biaya Administrasi STNK, TNKB, BPKB, dan SWDKLLJ

These fees refer to the administrative costs for obtaining and maintaining vehicle registration documents, as well as the compulsory motor vehicle third-party liability insurance (SWDKLLJ). Rates vary depending on the vehicle type and are regulated by the Ministry of Finance.

6. Opsen PKB

Starting January 2025, vehicles will be subject to Opsen PKB, a local tax imposed on the base PKB amount. The tax rate is set at 66% of the PKB liability. The calculation is as follows:

Opsen PKB = 66% x PKB liability

7. Opsen BBNKB

Similar to Opsen PKB, Opsen BBNKB is a local tax imposed on the base BBNKB amount at a rate of 66%:

Opsen BBNKB = 66% x BBNKB liability

Exceptions in Jakarta

It’s essential to note that Opsen PKB and Opsen BBNKB do not apply in Jakarta. Therefore, vehicle owners in the capital will not be subject to these additional taxes.

Stay informed and prepared for these upcoming changes in vehicle taxes to ensure a smooth and hassle-free vehicle purchasing experience in 2025.

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"Local Residents’ Coins Exchange Rejected, Bank Indonesia Speaks Out"

by Chief Editor
written by Chief Editor

Bank Indonesia (BI) Head Marlison Hakim confirms that circulating coin rupiah remains valid for payment in Indonesia. For currency exchange, BI offers three services: exchange of damaged or withdrawn banknotes, exchange of withdrawn coins, and exchange through Bank Indonesia’s PINTAR mobile app. Marlison stresses that coins can be exchanged via Bank Indonesia’s mobile app or common banks, as per the 2011 Currency Law. Recent viral social media videos showed a BI employee denying an customer’s coin exchange, with the customer claiming they were asked to dispose of 8 kg of coins. Marlison assured that BI’s commitment to serving customers remains a priority.

Title: "Spreading Video: Citizens Exchanging OldCurrency rejected, BI Speaks Out"

Introduction

In recent days, a video has been circulating on social media platforms in Indonesia, depicting citizens attempting to exchange old IDR (Rupiah) currency notes at a bank but being turned away. The video, which appears to show a bank employee refusing to accept the old notes, has sparked outrage and confusion among the public. The Bank Indonesia (BI), the country’s central bank, has since addressed the issue, aiming to clarify the existing regulations and dispel misconceptions.

The Video

The video, which has been widely shared on platforms like WhatsApp, Facebook, and Twitter, shows a man trying to exchange a stack of old IDR 50,000 and 100,000 banknotes at a bank. The bank employee can be seen refusing to accept the notes, citing that the bank only accepts new notes. The video has raised questions about the validity of old currency notes and the regulations surrounding their exchange.

Bank Indonesia’s Statement

Bank Indonesia has swiftly addressed the issue, releasing a statement to clarify the matter. The central bank confirmed that both old and new banknotes maintain their legal tender status and can be used for transactions. However, they explained the context behind the bank employee’s action in the video.

According to BI, banks have the right to refuse old notes due to their worn-out condition, which can hamper the Automatic Teller Machine (ATM) and cash recycling process. Here are the key points from BI’s statement:

  1. Legal Tender Status: Both old and new banknotes are legal tender and have the same value. They can be used for transactions at any place of business.

  2. Refusal of Worn-Out Notes: Banks can refuse old notes that are in poor condition or torn, as they can disrupt the cash recycling process and damage ATMs. However, they must still accept new banknotes.

  3. Exchange at BI Offices: Citizens can exchange their old notes for new ones at Bank Indonesia offices or any commercial banks, free of charge. There is no limit to the amount that can be exchanged.

The Importance of Coins and Fungibility

Bank Indonesia also took the opportunity to remind the public of the importance of using coins, which are legal tender just like banknotes. Coins help to reduce the burden on banknotes, increase transaction efficiency, and maintain the fungibility of money – the quality of being interchangeable and divisible without losing value.

Conclusion

The spreading video has highlighted the importance of understanding the regulations surrounding currency notes and their exchange. Both old and new banknotes remain legal tender, and citizens can exchange their old notes at banks or Bank Indonesia offices without any hassle. The key takeaway is that while banks can refuse old notes in poor condition, they must still accept new notes and coins. Bank Indonesia encourages the public to use a mix of banknotes and coins to maintain the smooth flow of money in the country’s economy.

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