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Indonesia rolls out fresh incentives to boost spending amid planned VAT hike

South-east Asia’s largest economy unveils new fiscal boost including tax breaks, EV incentives, and relief for workers

 Elisa Valenta
Published Mon, Dec 16, 2024 · 03:51 PM
    • Airlangga Hartarto, Indonesia's coordinating minister for economic affairs, says: "The VAT rate will increase to 12% as scheduled, while maintaining the principle of fairness."
    • Airlangga Hartarto, Indonesia's coordinating minister for economic affairs, says: "The VAT rate will increase to 12% as scheduled, while maintaining the principle of fairness." PHOTO: BT FILE

    [JAKARTA] Indonesia has announced a fresh wave of fiscal incentives to spur consumer spending, including extended tax breaks for electric vehicles (EVs), property and automotive sectors, alongside a 50 per cent electricity tariff cut for middle-income households.

    The new fiscal measures were announced by Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, during a press conference on Monday (Dec 16).

    Finance Minister Sri Mulyani Indrawati, who was also present at the briefing, explained that these incentives are designed to help South-east Asia’s largest economy remain resilient amid global economic turbulence.

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