The government is currently considering social assistance for the middle class in response to the increase in Value Added Tax (VAT) to 12 percent. Coordinating Minister for Community Empowerment Muhaimin Iskandar stated that the middle class and those vulnerable to poverty need to be monitored closely, necessitating the provision of a "buffer" to mitigate the impact of the VAT hike.
"Yes, as of today, the middle class and those at risk of poverty must be closely observed. Regarding the types and patterns of assistance, such as the relief measures that should be provided, this is an ongoing process," Muhaimin remarked at the Presidential Palace Complex in Central Jakarta on Tuesday, November 26, 2024.
However, he emphasized that this proposal has not yet been discussed in the meeting with President Prabowo Subianto today. Similarly, Minister of Social Affairs Saifullah Yusuf indicated that the provision of social assistance for the middle class will be evaluated first. Gus Ipul, as he is commonly known, confirmed that the single data system for social assistance recipients, which the government is currently addressing, must be finalized first.
"We will see, we will see. Right now, it is important to ensure the data is accurate; once the data is clear, we can determine its purpose. That is the priority for me. Not yet, not yet, we have not reached that point regarding the social assistance for the middle class," he stated.
Gus Ipul explained that the meeting with President Prabowo today focused on the single data system. However, he acknowledged that Prabowo is attentive to various issues, including the potential for providing social assistance to the middle class. "Certainly, the President is concerned about many matters, including this one, and it is a point of attention for him," he added. (ridwan@insightinnews.com)