Jakarta – Scores of protesters from the Populist National Association of Student Executive Councils (BEM SI Kerakyatan) held a demonstration in the Horse Statue area of Central Jakarta on Thursday afternoon, December 26, to oppose the planned increase in value added tax (VAT) to 12 percent.
According to CNN Indonesia's observations at the location, the demonstrators brought various campaign materials ranging from banners to poster rejecting the VAT increase. During the action, they also performed a theatrical action depicting how the VAT increase will burden the ordinary people.
In their demands, the protesters asked the government cancel the VAT increase. They believe that policy decisions taken by President Prabowo Subianto at the beginning of his term in office should bring prosperity to the ordinary people, not instead weigh down on them.
"Increasing VAT to 12 percent will be very suffocating, the government argues that increasing VAT to 12 percent is to restore the economy, but this is a policy that is very detrimental to the ordinary people", said a speaker from the command vehicle.
In addition to this, the protesters asked the government to conduct a re-evaluation of the VAT increase. They also asked the government to stop the narrative that is lying to public about the VAT increase.
"The implementation of VAT is very unfair, Indonesia is a country that is rich in natural resources, but natural resources are managed by foreign investors, taxes are a policy that is very detrimental to the ordinary people themselves", they said.
"Increasing VAT to 12 percent is a policy that is very suffocating and will harm the public, we come here today to push the government to reevaluate [the policy] and make decisions that should go through wider society not just a handful of people", they added.
The government has announced that the increase in VAT to 12 percent will take effect on January 1, 2025. This is a continuation of a President Joko "Jokowi" Widodo era policy through the Tax Regulation Harmonisation Law (UU HPP).
The Directorate General of Tax at the Ministry of Finance has stated that the 12 percent VAT increase will apply to all goods that have been subject to VAT up until now. The list includes goods and services that are frequently purchased by the public ranging from bath soap, restaurant fast food, telephone credit and concert tickets to video streaming services such as Netflix.
The increase in VAT to 12 percent has triggered a negative reaction from the public. People have held demonstrations and made petitions. As of this morning, a petition titled Government, immediately cancel the VAT increase! on the change.org website has already garnered 194,433 signatures. (tfq/sfr)
[Translated by James Balowski. The original title of the article was "BEM SI Kerakyatan Gelar Aksi di Patung Kuda, Tolak Keras PPN 12 Persen".]
