Jakarta (ANTARA) - The Indonesian government plans to announce several fiscal policies next week, including those related to taxes and business incentives for 2025, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.
"We are in the process of finalizing PPn BM (a sales tax on luxury goods) for the automotive sector and government-borne VAT (value-added tax) for the property sector. We will unveil them next week for next year's implementation," he remarked.
Speaking at his office in Jakarta on Tuesday (December 3) evening, Hartarto highlighted that the government would also announce several new incentives for labor-intensive industries and some adjustments to incentives for machinery rejuvenation.
He emphasized that the government is determined to boost the competitiveness of national labor-intensive industry players, especially those not relying on foreign investments.
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Furthermore, the minister highlighted that the government had not ruled out the possibility of providing other incentives to bolster people's purchasing power.
"We already have social assistance as a means to (strengthen) people's purchasing (power). Thus, we will need to assess it (the need for more incentives) first," he pointed out.
On Tuesday afternoon, Hartarto convened a limited meeting on fiscal policies and incentives expected to boost the economy and draw investment at the Office of the Coordinating Ministry for Economic Affairs, Jakarta.
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Finance Minister Sri Mulyani Indrawati, Manpower Minister Yassierli, Housing and Settlement Areas Deputy Minister Fahri Hamzah, and Tax Director General at the Finance Ministry Suryo Utomo attended the meeting.
At another meeting held at the office on November 3, Hartarto suggested extending the availability of several incentives to next year, including government-borne PPn BM and VAT.
"Government-borne taxes are essential to enable people from the middle class to purchase houses as well as vehicles for work and mobility purposes. Thus, we would like to propose the extension of their provision period," he stated.
Gov't to announce 2025 policies on tax, business incentives next week
Coordinating Minister for Economic Affairs Airlangga Hartarto delivers statements to the press at his office in Jakarta on Tuesday (December 3, 2024) evening. ANTARA/Uyu Septiyati Liman.
