Indonesia's Harmonization of Tax Regulations Law (HPP Law), enacted in 2021, stipulated that the VAT rate would increase from 11% to 12% effective January 1, 2025.
The regulation comes amid rapid growth in Indonesia's consumer electronics market, where concerns over product safety and quality have become increasingly prominent.
The Indonesian government has decided to officially join the New Development Bank (NDB) in order to strengthen cooperation with developing countries and multilateral institutions and drive national development transformation.