ResolvedLatest progress: 31 December 2024

12% VAT limited to luxury goods

The VAT rise was limited to luxury goods, so essentials kept the previous rate.

1. d✓Listen to Aspirations: done
2. a✓Analyse the Problem: done
3. s✓Bring the Parties Together: done
4. c✓Find a Solution: done
5. o✓Focus on Results: done

1. d

   D — Aspiration(done)

   The VAT rise to 12 percent was planned to apply across the board.

2. a

   A — Sticking Point(done)

   A general rise would also have hit essentials and public services.

3. s

   S — Parties Brought Together5 December 2024(done)

   The House leadership met President Prabowo Subianto to discuss the planned VAT rise.

4. c

   C — Solution / Decision31 December 2024(done)

   The House leadership proposed the 12 percent rate for luxury goods only; the government confirmed it.

5. o

   O — Result31 December 2024(done)

   Essentials and public services kept the previous rate; the 12 percent VAT applies only to luxury goods and services.