ILEA003034245: Buildings Construction in Hangzhou

Indonesia's 2025 VAT Rate Increase

Workers complete the construction of a building's roof in Jakarta, Indonesia, on December 21, 2024. The government raises the Value Added Tax (VAT) rate to 12 percent starting January 1, 2025. According to economist and Deputy Director of the Institute for Development of Economics and Finance (Indef), Eko Listyanto, the VAT increase reduces public consumption, thereby slowing down the economy, especially as Indonesia's economic growth is already decelerating. Meanwhile, data from the Central Statistics Agency (BPS) shows that inflation in November 2024, compared to the beginning of the year (January 2024), increases by 1.12%. (Photo by Afriadi Hikmal/NurPhoto)

Indonesia's 2025 VAT Rate Increase

Workers complete the construction of a building's roof in Jakarta, Indonesia, on December 21, 2024. The government raises the Value Added Tax (VAT) rate to 12 percent starting January 1, 2025. According to economist and Deputy Director of the Institute for Development of Economics and Finance (Indef), Eko Listyanto, the VAT increase reduces public consumption, thereby slowing down the economy, especially as Indonesia's economic growth is already decelerating. Meanwhile, data from the Central Statistics Agency (BPS) shows that inflation in November 2024, compared to the beginning of the year (January 2024), increases by 1.12%. (Photo by Afriadi Hikmal/NurPhoto)