Jakarta – The Labour Party and the Confederation of the Indonesian Trade Unions (KSPI) is opposed to the government's plan to raise Value Added Tax (VAT) from 11 to 12 percent in 2025. Labour Party President and KSPI President Said Iqbal has threatened that they will hold demonstrations if the plan is not cancelled.
"If the government goes ahead and increases the VAT to 12 percent and does not increase the minimum wage in accordance with [our] demands, the KSPI together with other trade unions will hold a national strike involving 5 million workers throughout Indonesia", Iqbal said in a written statement on Tuesday November 19.