Indonesia Pares Back VAT Hike to Apply Only to Luxury Goods

Indonesia will increase the VAT to 12% only for luxury goods and services like private jets and luxury houses, President Prabowo Subianto says in speech after meeting with finance ministry.

• All other goods and services will not be subject to the VAT hike, that was set to take effect on Jan. 1
• Basic necessities that have been granted VAT exemption or 0% VAT will remain in effect

To contact the reporters on this story:
Grace Sihombing in Jakarta at gsihombing@bloomberg.net;
Norman Harsono in Jakarta at nharsono@bloomberg.net

To contact the editor responsible for this story:
Claire Jiao at cjiao5@bloomberg.net

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