Minister: No Talks Yet on Postponing 12 Percent VAT Implementation

Jakarta, VIVA – The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government has not yet discussed postponing the implementation of a 12 percent Value-Added Tax (VAT) rate planned for early 2025.

“Not yet, it hasn’t been discussed,” Minister Hartarto said at the Presidential Palace Complex, Jakarta, on Thursday (Nov 28).

Minister Hartarto emphasized that during the meeting with President Prabowo, the delay in implementing the 12 percent VAT rate was not a topic of discussion.

Instead, the meeting focused on Indonesia's accession to the Organisation for Economic Co-operation and Development (OECD).

Earlier, the Chair of the National Economic Council (DEN), Luhut Binsar Pandjaitan, mentioned that the implementation of the 12 percent of VAT rate would likely be postponed.

“It’s almost certain to be delayed,” Pandjaitan said on Wednesday (Nov 27).

Pandjaitan explained that before implementing the 12% VAT, it is essential to provide economic stimuli, especially to vulnerable and middle-class citizens.

“Before the 12 percent of VAT becomes effective, we must first give assistance to people struggling economically. It may take two or three months of calculations. We want to avoid imposing it too strictly,” he added.