Govt To Extends Tax Incentives To Support Public Purchasing Power

Friday, 08 Nov 2024

By srirahayu@insightinnews.com Coordinating Minister for Economic Affairs, Airlangga Hartarto, has unveiled a series of incentives that are set to persist under the administration of President Prabowo Subianto. These prioritized measures are designed to enhance public purchasing power and stimulate economic growth in the years ahead. Among the incentives are the Government-Borne Value Added Tax (PPN DTP), the Luxury Goods Tax (PPnBM), and incentives aimed at promoting electric vehicles. "Several key incentives are slated to carry over into the next year and will be deliberated with the Ministry of Finance, including PPN DTP, PPnBM, and PPN DTP for both motor vehicles and electric cars," Airlangga stated during a press conference in Jakarta on Sunday, November 3, 2024. Furthermore, the government intends to extend the People's Business Credit (KUR) program and investment loans to rejuvenate labor-intensive sectors. This initiative is anticipated to bolster the industrial sector's capacity and fortify the national economy. In terms of Human Resource Development, the government will introduce a job loss guarantee program, a Ready Worker initiative, and a Worker Village project to elevate the quality and competitiveness of the Indonesian workforce. Airlangga underscored the importance of sustaining these diverse incentive programs, given the relatively subdued public purchasing power. "To foster economic growth, incentives such as PPN DTP are vital for all segments of society," he remarked. In a recent discourse regarding the 2025 State Budget Draft, Finance Minister Sri Mulyani Indrawati underscored the commitment to uphold the five social assistance initiatives established during President Joko Widodo's tenure, ensuring their continuation under President Prabowo's administration. She articulated this vision while addressing the Budget Agency of the House of Representatives on August 27, as reported by the Ministry of Finance. Sri Mulyani highlighted that the forthcoming budget will prioritize the enhancement of human resource quality, with a keen focus on sectors such as education, health, food security, and energy. "While there are new priorities to embrace, we will also ensure that continuity is preserved within the 2025 budget," she remarked. Through a blend of innovative incentives and sustained programs, the government aspires to invigorate economic growth and uphold stability during this pivotal transition of leadership.

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