Jakarta – Indonesian President Prabowo Subianto was greeted with great enthusiasm by crowds lining the Sudirman-Thamrin streets after attending the Annual Financial Closing Meeting with Minister of Finance Sri Mulyani in Jakarta on Tuesday (December 31).

Near the Kempinski Hotel in Thamrin, as residents gathered to celebrate the New Year’s Eve festivities, people surrounded Prabowo’s vehicle as it passed through the area after leaving the Ministry of Finance building.

Prabowo emerged through the sunroof of his car to greet the crowd, shaking hands with the public, and allowing time for photos and videos.

“Pak Prabowo! Pak Prabowo!” chanted the crowd in excitement as they welcomed him.

Earlier, during the Annual Financial Closing Meeting, Prabowo and Sri Mulyani reaffirmed that the 12% Value-Added Tax (VAT) would apply exclusively to luxury goods and services consumed by the affluent.

“This means that for goods and services not classified as luxury items, there will be no increase in VAT, which remains at the current 11% rate implemented since 2022,” Prabowo clarified.

He further noted that the 12% VAT only affects items already subject to the Luxury Goods Sales Tax (PPnBM).

“These are goods consumed by the wealthy, such as private jets, luxury yachts, and high-end homes valued far beyond middle-class standards,” he explained.

Prabowo also emphasized that a 0% VAT rate will remain in place for essential goods and services that have long been exempted from tax.

“For goods and services essential to the majority of the population, the VAT exemption remains. This includes staples such as rice, meat, fish, eggs, vegetables, fresh milk, education services, healthcare services, public transportation, affordable housing, and drinking water,” he said.

Prabowo reiterated the government’s commitment to a fair taxation system that prioritizes the welfare of the people.

“The government will continue to strive for a taxation system that is just and pro-people,” he stated firmly. (RR)