- RI plans a USD2.3 billion stimulus to coincide with a VAT increase from 11 percent to 12 percent starting January 1, 2025
- President Prabowo Subianto announced the stimulus package which includes 10 kilograms of rice per month for 16 million beneficiaries
- The stimulus aims to maintain purchasing power and boost the economy
- Additional support includes a 50 percent discount on electricity for homes with a capacity of up to 2,200 VA
- Workers in labor-intensive sectors earning up to Rp10 million monthly will receive incentives under Article 21 Income Tax
- MSMEs with annual turnovers under Rp500 million will receive free income tax
- The total value of the stimulus package is Rp38.6 trillion
- In January and February 2025, 10 kilograms of rice per month will be provided to the lowest income families
- A one percent government-borne VAT will apply to basic necessities for low-income households to keep VAT rates at 11 percent for these items
- The stimulus for basic necessities is designed to help low-income families maintain their purchasing power for essential goods
Source: en.antaranews.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.
