Protesters in Jogja reject VAT hike, call for wealth tax, end to official allowances

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Detik Jogja – December 30, 2024
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Protesters gathered in front of Yogyakarta DPRD on Jalan Malioboro – December 30, 2024 (Detik)
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Jogja, Adji G Rinepta – Protesters calling themselves the Jogja Calling (Jogja Memanggil) Alliance demonstrated in front of the Yogyakarta provincial Regional House of Representatives (DPRD) on Jalan Malioboro in Yogyakarta city on Monday December 30.

They were rejecting the planned increase in value added tax (VAT) to 12 percent and demanding that the policy be cancelled.

According to Detik Jogja's observations, the protesters began gathering at around 2 pm at the Abu Bakar Ali parking area, after which they marched along Jalan Malioboro through the city's main shopping district towards the DPRD building.

The demonstrators also brought an open truck which was used as a platform for giving speeches and unfurled banners and posters with their demands. After arriving in front of the DPRD, they gave speeches in front of the parliament gates which were closed and guarded by police.

The protest became a spectacle for tourists who were enjoying the Malioboro area. Traffic flow along Jalan Malioboro was also affected because the action took up half the road.

Police officers left one lane on Jalan Malioboro open and allowed the demonstrators to use the other. This resulted in vehicles snaking along in front of the Abu Bakar Ali parking area. In addition to this, traffic heading towards Jalan Malioboro was redirected to Jalan Pasar Kembang in order to reduce congestion.

The protesters only held the action in front of the DPRD gates without attempting to enter the building area. After giving speeches for about an hour, the demonstrators then moved south to the nearby zero kilometre point in front of the central post office and continued giving speeches.

In an official statement, the demonstrators asked the government to cancel the increase in VAT to 12 percent and pushed for application of a 5 percent VAT.

"The Jogja Calling Alliance is also calling on all Indonesian people in other regions to besiege local tax offices and the State Palace for those who are in Jakarta”, read the official statement received by Detik Jogja on Monday.

The demonstrators believe that based on legislation the application of a 5 percent VAT is very possible in Indonesia. This is stated in Law Number 7/2021 on the Harmonisation of Taxation Regulations (UU HPP) Article 7 Paragraph 3 Chapter IV which states that the VAT rate can be in the range of 5-15 percent.

This stipulation can be implemented through a government regulation in lieu of law (Perppu) if President Prabowo Subianto truly favours the middle- to lower class people, instead of favouring a handful of rich people in Indonesia.

"An economic study could follow, the important thing is to take sides first, because now the determination is with the president of Indonesia. Who will he support, this will be determined by his assertiveness before January 1, 2025”, said Jogja Calling Alliance spokesperson Surastri.

In addition to holding the action, the demonstrators also put up a giant red banner at the Abu Bakar Ali parking area reading "Once upon a time the poor did not have anything to eat except the rich".

The following are the protesters’ demands:

  • Cancel the VAT increase to 12 percent and implement a 5 percent VAT;
  • End the foreign debt;
  • Apply a wealth tax;
  • Abolish allowances for public officials;
  • Disband the Red-and-White Cabinet which is greedy for budget sources;
  • Impoverish corruptors in Indonesia and ratify the Draft Law on Asset Seizures
  • Besiege tax offices throughout Indonesia in your region until the VAT hike is cancelled.

[Translated by James Balowski. The original title of the article was "Massa Demo di Depan DPRD DIY, Tolak PPN 12%".]

Source: https://www.detik.com/jogja/berita/d-7709863/massa-demo-di-depan-dprd-diy-tolak-ppn-12.

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