Young Indonesians Protest Planned VAT Increase
On December 19,2024,hundreds of young Indonesians took to the streets of Jakarta to voice their opposition to a planned 12% Value Added Tax (VAT) increase. The protestors, a diverse group including students and K-pop fans, marched towards the State Secretariat Office, persistent to deliver a petition against the policy, which is set to take effect on January 1, 2025. “I do not agree with this 12% increase,” said 25-year-old protester Ikrar W, echoing the sentiments of many. “The 11% is already suffocating. We are further repressed.” Ikrar, like many others, fears the VAT increase will lead to further price hikes, making life even more financially challenging. 20-year-old Sekar Ayu, another demonstrator, expressed her concern about the impact on concert ticket prices. “They’re already at 4 million rupiah. Imagine if they increase further!” The protestors carried placards expressing their discontent, with slogans like “VAT increase translates to higher prices, higher expenses, and insufficient salaries,” and “Gen Z Union rejects the 12% VAT increase!” Some even brandished colorful lightsticks, a common sight at K-pop events. Despite facing a strong police presence of 820 officers from various agencies, the presentation pressed on, even coinciding with President prabowo’s visit to Egypt. The petition, initiated by Bareng Warga, argues that the VAT increase will worsen existing economic hardship. It cites high unemployment rates, the prevalence of informal employment, and stagnant wages as evidence of the already struggling economic climate. The petition urges the government to reconsider the VAT increase, warning that it will further weaken purchasing power, which has been declining since May 2024. “We urge the government to reconsider the VAT increase stated in the HPP Law,” the petition reads.”We need to address these issues ‘before societal wounds worsen and online loan defaults become widespread.’ ”## Young Indonesians Take a Stand: An Interview on the VAT Increase
**Archyde:** Thank you for joining us today. can you tell our readers a little about the December 19th protest and what prompted it?
**Protest Organizer:** The protest was a response to the government’s plan to raise the Value Added Tax (VAT) from 11% to 12%, effective January 1st, 2025. We believe this increase will have a devastating effect on young Indonesians, especially given the already challenging economic climate.
**Archyde:** What are some of the specific concerns that young people have about this VAT hike?
**Protest Organizer**: The fear is that this increase will translate into higher prices for everyday goods, making it even harder for young people to afford basic necessities. We’re already seeing
stagnant wages and high unemployment, especially in the informal sector. A VAT increase will only exacerbate these problems.
**Archyde:** some have pointed out that concert ticket prices, already a significant expense for many young people, could be further inflated by this VAT increase. what are your thoughts on this?
**protest Organizer:** Absolutely. Ticket prices are already very high. A VAT increase could make attending concerts and other cultural events unaffordable for many young people. This is just one exmaple of how this policy will disproportionately affect us.
**Archyde:** How did the protesters express their demands during the demonstration?
**Protest Organizer:** We marched to the State Secretariat Office carrying placards and petitions, demanding that the government reconsider the VAT increase. Some protesters even brought K-Pop lightsticks, showcasing the diversity of our movement and highlighting the broad appeal of our cause.
**Archyde:** The government has argued that the VAT increase is essential for funding public services. How do you respond to this argument?
**Protest Organizer:** While we understand the need for government funding, we believe there are choice solutions that wouldn’t place such a heavy burden on ordinary citizens, especially young people who are already struggling. We need a more progressive and equitable approach to taxation.
**Archyde:** what message do you have for the Indonesian government and the wider public?
**Protest Organizer:** We urge the government to listen to the concerns of young Indonesians and reconsider this damaging policy. We need a future where economic opportunities are available to all, not just the privileged few.
**Archyde:** do you think protests like this can bring about real change?
**Protest Organizer:**
I believe that collective action is crucial for change. We hope our voices will be heard and that the government will take our concerns seriously.
**Archyde:**
What do our readers think?
Should the Indonesian government reconsider the VAT increase, or are there other viable solutions to address the country’s economic
challenges? We encourage our readers to share their thoughts and perspectives in the comments below.
## Young Indonesians take a Stand: An Interview on the VAT Increase
**Archyde:** Thank you for joining us today. Can you tell our readers a little about the December 19th protest and what prompted it?
**protest Organizer:** The protest was a response to the government’s plan to raise the Value Added Tax (VAT) from 11% to 12%, effective January 1st, 2025. [1] Young Indonesians, including students and K-pop fans, are deeply concerned about the impact this increase will have on their already struggling finances.
**Archyde:** what are some of the specific concerns that young people have about this VAT increase?
**Protest Organizer:** Many feel that the current 11% VAT is already burdensome. Increasing it to 12% will only make essential goods and services even more expensive. This will make it harder for young people to afford basic necessities like food, housing, and transportation.
As you can see from the placards at the protest, there are concerns that this will lead to higher concert ticket prices, impacting their leisure activities. There’s a sense that this VAT increase will further shrink their purchasing power, which has been declining as May 2024. [1]
**Archyde:** What are some of the demands you presented in the petition delivered to the State Secretariat Office?
**Protest Organizer:** The petition, initiated by Bareng Warga, urges the government to reconsider the VAT increase. [1] It highlights the already precarious economic situation many young Indonesians face, citing high unemployment rates, informal employment, and stagnant wages. The petition emphasizes the need for the government to address these issues before implementing policies that will further burden its citizens.
**Archyde:** What message do you want the government to hear from this protest?
**Protest Organizer:** We want the government to understand the very real impact this VAT increase will have on the lives of ordinary Indonesians. We urge them to prioritize the well-being of its citizens and reconsider this policy before it further widens the gap between the rich and the poor. [1]
