Indonesia’s Finance Minister, Sri Mulyani Indrawati, has confirmed that the country will increase its standard VAT rate from 11% to 12%, effective 1 January 2025.
The VAT adjustment aligns with the nation’s Tax Regulation Harmonization Law, enacted in 2022.
The 2022 State Budget, outlined in Law No. 7 of 2021 on the Harmonization of Tax Regulations, announced an increase in the VAT rate from 10% to 11% effective 1 April 2022 and further to 12% starting 1 January 2025.
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