Jakarta –
Coordinating Minister for Economic Affairs Airlangga Hartarto said the government will continue the Sales Tax incentives for Government-Borne Luxury Goods (PPnBM DTP), Value Added Tax (VAT) DTP for Battery-Based Electric Vehicles (KLBB) and housing in 2025.
“To continue to next year and this will also be discussed immediately with the Ministry of Finance,” he said in a press conference at the Four Seasons Hotel, Sunday (3/11/2024).
Not only that, the government will also continue policies related to the regulation of people’s business credit (KUR) and agricultural machine tool (alsintan) credit for farmers. Incentives for investment credit will also be discussed to help labor-intensive industries.
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“And new proposals are also being proposed for investment credit or revitalization of labor-intensive industries,” he continued.
The reason why a number of incentives during the administration of President Joko Widodo (Jokowi) were continued during the era of President Prabowo Subianto, Airlangga said was to support people’s purchasing power which was acknowledged to have decreased.
“First, the consideration we see is that the purchasing power of the community is still relatively low, so we need to drive for growth,” he explained.
According to Airlangga, the VAT DTP incentive is a component that is really needed by the middle class. According to him, important needs for the middle class are buying a house and mobility.
“Therefore, we will propose to extend these two things. How long will it be extended? There will still be discussions with the Minister of Finance,” he explained.
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Jakarta’s Economic Stimulus: A Comedy of Taxation
Ah, Jakarta! The place where economic policies are more entertaining than a circus act. Coordinating Minister for Economic Affairs, Airlangga Hartarto, has decided that the Sales Tax incentives for Government-Borne Luxury Goods (PPnBM DTP) and Value Added Tax (VAT) DTP for Battery-Based Electric Vehicles (KLBB) are all the rage. He’s extending these incentives into 2025 – I mean, who wouldn’t want to buy a fancy car while trying to avoid stepping in potholes that could swallow a small family?
said Airlangga at a press conference held in the lap of luxury at the Four Seasons Hotel. Because, obviously, nothing says “I care about the economy” like a chat over canapés and sparkling water.
Of course, it’s not just about electric vehicles and luxury goods. The government is throwing a lifebuoy to farmers with incentives for people’s business credit (KUR) and agricultural machinery (alsintan) credit. I suppose when life gives you lemons, you must purchase a lemon juicer on credit to maximize your profits! And let’s not forget the investment credit for labor-intensive industries—proof that the government knows we work hard, just not smart.
“First, the consideration we see is that the purchasing power of the community is still relatively low, so we need to drive for growth,”
Airlangga explained, as if stating the obvious was a new sport. Yes, dear reader, the purchasing power is like the plot of a bad sitcom: it keeps getting worse and yet the show continues to be renewed!
Ah, the VAT DTP incentive! It’s become the best friend of the middle class, the taxi driver and the grumpy accountant alike. According to our good Minister, important middle-class needs include buying a house and maintaining mobility, which seems quite specific. Who knew the secret to economic revival lay in a cozy living room and a nice commute?
So what’s next? Airlangga is proposing to extend these benefits. Sounds like a lovely idea, or as I like to call it, “Let’s keep throwing solutions at the wall and see what sticks.” Of course, this will all be discussed with the Minister of Finance, a role still held in an air of mystery, much like the final season of your favorite show that you just can’t quite finish.
In conclusion, if you’re in Jakarta, take a moment to celebrate these economic endeavors while laughing at the absurdity of it all. After all, if you can’t enjoy the ride in your luxury vehicle (tax incentives notwithstanding) due to the crumbling streets, at least you can still take comfort in the fact that someone, somewhere is discussing the issues over a bottle of fine wine.
So here’s to you, Jakarta! A city of contrasts, chaos, and surprisingly—comedy in economic policy. Let’s see how this all unfolds in 2025!
Jakarta –
Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the Indonesian government is set to maintain the Sales Tax incentives for Government-Borne Luxury Goods (PPnBM DTP), as well as the Value Added Tax (VAT) DTP specifically for Battery-Based Electric Vehicles (KLBB) and housing, well into 2025.
“This initiative will carry on into the next year and will soon be deliberated with the Ministry of Finance,” he stated during a press conference held at the luxurious Four Seasons Hotel on Sunday, November 3, 2024.
In addition to these measures, the government plans to further advance existing policies related to the regulation of people’s business credit (KUR) as well as agricultural machinery (alsintan) credits directed at assisting farmers. Furthermore, incentives focused on investment credit are also on the agenda to bolster labor-intensive industries, reflecting a comprehensive approach to economic support.
“New proposals are currently under consideration for investment credit or even revitalizing labor-intensive industries,” he further elaborated, indicating a proactive stance on economic revitalization.
According to Airlangga, the decision to perpetuate several incentives from President Joko Widodo’s administration into President Prabowo Subianto’s time is rooted in a desire to uplift the purchasing power of the populace, which he acknowledged has faced challenges.
“The primary factor influencing this decision is the observation that the purchasing power within the community is still relatively low, prompting the need to stimulate economic growth,” he emphasized.
Airlangga highlighted that the VAT DTP incentive plays a crucial role in addressing the needs of the middle class, particularly in terms of critical expenditures like housing and mobility.
“Therefore, we will propose to extend these two vital incentives. How long we will extend them is still up for discussion with the Minister of Finance,” he added, signaling ongoing negotiations aimed at reinforcing economic stability.
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