Several New Levies Increase, In Addition To 12 Percent VAT May Raise Public Spending

January 2, 2025 | 03:29 pm

TEMPO.CO, Jakarta - Indonesian people's spending has the potential to increase in 2025 because they have to pay several new levies and certain tariff increases. The 12 percent VAT increase on a number of goods and services is one of them. President Prabowo Subianto officially announced the policy during a press conference at the Ministry of Finance, Tuesday, December 31, 2024.

"Today the government has decided that the increase in the VAT rate from 11 percent to 12 percent will only apply to luxury goods and services. I repeat for clarity, the increase in VAT from 11 percent to 12 percent is only imposed on luxury goods and services," President Prabowo said. In addition to the VAT rate increase, the following is a list of levies that must be paid or are in the process of being determined by the government.

1. Suplementary Motor Vehicle Tax (Opsen)

The government has introduced a new motor vehicle tax collection system called tax opsen as stipulated in Law Number 1 Year 2022 on Financial Relations between the Central Government and Regional Governments.

Opsen is an additional tax levy according to a certain percentage. Article 83 states that the Opsen Rate is set as follows: a. Opsen on Motor Vehicle Tax (PKB) at 66 percent; b. Motor Vehicle Title Transfer Fee (BBNKB) Opsen of 66 percent; and c. Non-Metal Mineral and Rock Tax (MBLB) Opsen of 25 percent calculated from the amount of tax payable.

2. Retail Selling Price of Cigarettes

The government increases the retail selling price or HJE of cigarettes starting January 1, 2025. The latest cigarette HJE list is regulated in Minister of Finance Regulation (PMK) Number 97 of 2024 concerning the Third Amendment to PMK Number 192/PMK.010/2021 concerning Excise Tariffs on Tobacco Products in the Form of Cigarettes, Cigars, Leaf or Klobot Cigarettes, and Sliced Tobacco. The regulation was promulgated on December 12, 2024 after Finance Minister Sri Mulyani Indrawati signed it on December 4, 2024.

3. Vehicle Insurance Obligation

The government is implementing mandatory third party liability (TPL) insurance for all motorized vehicles starting January 2025. This vehicle insurance provides risk coverage for compensation claims from third parties. The obligation to follow this insurance for all motor vehicle owners is stipulated in Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector.

4. Water Tariff Increase

Perusahaan Umum Daerah Air Minum Jaya (PAM Jaya) has officially raised water tariffs in Jakarta. The tariff is effective from January 2025 and is calculated in the water bill in February. The tariff increase is based on the Decree of the Governor of DKI Jakarta Number 730 of 2024 concerning Drinking Water Tariffs of the General Company of Regional Drinking Water Jaya.

The social/K I customer group specifically for usage up to 10 cubic meters or the equivalent of 10 thousand liters experienced a tariff decrease. While other customer groups remain the same. Tariffs will be applied progressively when water consumption is in the range of more than 10 cubic meters to 20 cubic meters and above 20 cubic meters.

5. Health Insurance

The contribution of participants in the Health Social Security Organizing Agency or BPJS Kesehatan will increase this year. The increase is also in line with the implementation of BPJS KRIS (Standard Inpatient Class) as stipulated in Presidential Regulation (Perpres) Number 59 of 2024. However, the government will only determine its certainty in mid-2025, so that currently the BPJS contribution scheme is still using the old rules, namely Presidential Regulation Number 64 of 2020.

The possibility of an increase in contributions next year was previously revealed by the President Director of BPJS Kesehatan, Ali Ghufron Mukti. This is done by the company to mitigate the risk of default that could be experienced by the company in 2026 due to expenses that are greater than income from participant premium payments. "It is possible (to increase)," he said.

BPJS Kesehatan Head of Public Relations Rizzky Anugerah said that his party is still discussing the implementation of new fees next year. In accordance with Presidential Regulation 59, he said, evaluations will still be carried out, not only on contributions, but including benefits and tariffs. "The contribution scheme is still being discussed between ministries and institutions," he said in a short message on Thursday, January 2, 2025.

DANI ASWARA | AISHA SHAIDRA

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