Starting from January 1, 2025, the Indonesian government will officially raise the value-added tax (VAT) rate on Luxury Goods and services from 11% to 12%, while the VAT rate on Other commodities and services will remain unchanged. The VAT in Indonesia was raised from 10% to 11% in 2022. Recently, Indonesia has again increased the VAT, implementing a new 12% VAT on all commodities starting January 1, 2025. This move has sparked different opinions, with public concern that it will increase corporate costs and further suppress purchasing power. Indonesian media predicts that this policy will impact retail, Autos, and Real Estate, among others. (China News Network)