JAKARTA -- The Indonesian government said on Monday that it will continue with its plan to raise value-added tax to 12% from Jan. 1, but will limit the new rate to a range of "premium" goods and services following a public backlash.
The hike, from 11% in 2022, was prescribed in a law on tax issued in 2021 and was initially supposed to cover a broad range of items. But a rising public backlash in the past few months, alongside mass layoffs and weakening purchasing power, has forced the new administration of President Prabowo Subianto to scale back the plan.
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