JAKARTA -- Just five hours before a New Year's Day increase in Indonesia's value-added tax (VAT) rate from 11% to 12% was set to take effect, President Prabowo Subianto announced it would be scaled back significantly.
Economy
Indonesia's VAT U-turn raises questions for public finances
Southeast Asia's largest economy relies on the levy more than most nations
Indonesian bank notes at a money changer in Jakarta. President Prabowo Subianto's decision to scale back a planned value-added tax increase has left uncertainties hanging over the public finances of Southeast Asia's largest economy. © Reuters
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