Indonesia to Increase VAT to 12%, Ensures Key Exemptions and $2.5 Billion Incentives

• Indonesia plans to increase VAT to 12% from 11% next year
• Basic goods and staple foods will remain exempt from the VAT increase
• The government will cover the cost of the VAT increase on certain staples like cooking oil, sugar, and wheat flour
• A total of 2.5 billion dollars in incentives will be provided to help boost consumption
• The VAT hike and incentives are part of efforts to manage economic growth and consumption impacts in 2025

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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