Indonesia Economic Adviser Says VAT Hike May Be Delayed: Kompas

The head of Indonesia’s economic advisory council said a plan to increase the value-added tax from Jan. 1 is likely to be delayed, Kompas reported on Wednesday.

Luhut Pandjaitan said postponing a planned increase to 12% from 11% currently would be in line with the new government’s bid to support the middle class with social assistance benefits, according to the Indonesian newspaper. His comments suggest that President Prabowo Subianto’s administration is trying to spur domestic demand as economic growth loses some steam.

“It’s almost certain to be postponed,” Pandjaitan was quoted as saying.

The delay poses additional risks to ...