Government Increases Value Added Tax (VAT) to 12% from 2025 The Indonesian government has officially announced an increase in Value Added Tax (VAT) from 11% to 12% effective January 1, 2025. However, this new VAT rate will only apply to luxury goods that are also subject to Luxury Goods Sales Tax (LGST). The announcement was … Read more
President’s Gift for New Year: PPN Rate Freeze at 11 Percent As the clock struck midnight on January 1, 2025, Indonesians welcomed the new year with the unexpected yet welcome news of a presidential gift from Prabowo Subianto. The President has decided to scrap the planned increase of the Pajak Pertambahan Nilai (PPN) rate from … Read more
Title: Indonesia Hikes PPN on Luxury Goods to 12% CNN Indonesia The Indonesian government has officially announced a tax hike, increasing the value-added tax (PPN) from 11% to 12% exclusively for luxury goods. This was confirmed by President Prabowo Subianto and Minister of Finance Sri Mulyani at a press conference held at the Ministry of … Read more
Presidential Announcement: PPN Increase to 12% Affects Only Luxury Items In a significant move, President Prabowo Subianto has decided to enforce an increase in the Value Added Tax (VAT) rate from 11% to 12% only for luxury items,ercising a restraint that satisfies the spirit of Law No. 7/2021 regarding the Harmonization of Fiscal Laws. Targeted … Read more
"Threat Assessment: PDIP’s Warnings on the 12% PPN Content Proposal"
PDIP Chairperson Questions discipline of DPR Members as Rieke Diah Pitaloka faces MKD Complaint JAKARTA – Deddy Yevry Sitorus, the Chairman of the Indonesian Democratic Party of Struggle (PDIP)’s Central leadership body (DPP), has spoken out about the recent complaint filed against PDIP legislator Rieke Diah Pitaloka with the House of Representatives’ Ethics Council (MKD). … Read more
Presidential Address: Prabowo Speaks Out Against Elitist Deterrents In his recent address at the National Long-Term Development Plan (RPJMN) 2025-2029 workshop, President Prabowo Subianto took a moment to address certain portions of society that have been critical of his new administration, which has been in office for approximately two months. Prabowo pointedly spoke about individuals … Read more
Headline: PDP‘s Rieke Diah Pitaloka’s Intervention on PPN Hike Sparks Controversy,andet DPR’s MKD Article: Rieke Diah Pitaloka, an Indonesian Democratic Party of Struggle (PDI-P) lawmaker, recently sparked a controversy after her intervention on the proposed 12% Value Added Tax (PPN) hike was viewed as a provocation. Her remarks were subsequently reported to the House of … Read more
Rieke Diah Pitaloka Presses For Delay in VAT Increase
Headline: MP from PDI Perjuangan, Rieke Diah Pitaloka, Facing Ethics Probe Over PPN Hike Remarks Subhead: Parliament’s Ethics Body Receives Complaint Amid PPI 12% Increase Controversy Article: A member of Indonesia’s House of Representatives (DPR) from the PDI Perjuangan faction, Rieke Diah Pitaloka, is being investigated by the Mahkamah Kehormatan Dewan (MKD) following a complaint … Read more
2025 Tax Rates: A 7-Component Car Purchasing Calculation
Title: Indonesia‘s Upcoming Vehicle Tax Changes: What You Need to Know In a significant shift in Indonesia’s vehicle taxation landscape, owners of motor vehicles outside Jakarta will face new taxes starting January 5, 2025. A total of seven tax components will be applicable, including two new ones: Pajak Kendaraan Bermotor (PKB) and Bea Balik Nama … Read more
Indonesia Increases PPN Rate to 12% from January 2025: What We Know So Far In a significant shift, Indonesia’s Value Added Tax (VAT) rate, known as Pajak Pertambahan Nilai (PPN), will rise to 12% starting January 1, 2025. This change affects all transactions, regardless of whether they are conducted in cash or non-cash form. Here’s … Read more