Jakarta – Indonesian President Prabowo Subianto was greeted by a sea of people celebrating New Year’s Eve at Bundaran HI, Central Jakarta, on Tuesday (31/12) night.

Using the Maung Garuda car, Prabowo, who was wearing a brown batik shirt, waved and greeted the people who enthusiastically welcomed his arrival.

‘Mr! Mr President!’ people shouted, calling out to the eighth president. 

Not only shaking hands, Prabowo also took the time to be invited to take pictures with people from various circles ranging from parents to children. 

After the fireworks celebration, he immediately left the HI Roundabout area. Along the way leaving the location, many residents continued to call Prabowo and scramble to capture the moment.

Previously, Prabowo attended the Annual Book Closing Meeting with Finance Minister Sri Mulyani where he emphasised that the 12% VAT does not apply to goods and services other than luxury goods and services consumed by the wealthy.

‘This means that for goods and services other than luxury goods, there will be no increase in VAT, which remains at the current rate, which has been in effect since 2022,’ Prabowo said, referring to the old VAT rate of 11%.

Prabowo said the 12% VAT does not apply to goods other than those already subject to Luxury Goods Sales Tax (PPnBM).

‘Those consumed by the wealthy, the well-off. For example, private jets, which are classified as luxury goods used by the upper class, yachts, yachts, very luxurious houses whose value is above the middle class,’ he explained.

Meanwhile, he emphasised that the 0% VAT rate still applies to goods and services that are the basic needs of the community that have so far received tax exemption facilities.

‘For goods and services that are needed by many people who are still given VAT exemptions, including basic needs, rice, meat, fish, eggs, vegetables, fresh milk, education services, health services, public transport services, simple houses, drinking water,’ Prabowo said.

Prabowo also emphasised the government’s commitment to always side with the people by creating a fair taxation system.

‘The government will continue to strive to create a fair and pro-people taxation system,’ he said. (RR)