Despite recent confirmation that Indonesia's standard VAT rate would be increased from 11% to 12% as scheduled from 1 January 2025, with some relief measures (previous coverage), President Prabowo Subianto announced on 31 December that the increase to 12% would only apply to luxury goods and services. According to Prabowo, the government has decided that the increase in the VAT rate only applies to goods and services that are the subject of luxury sales tax, such as private jets, yachts, and luxury homes. Other goods and services remain subject to the 11% VAT rate. Further, although the increase is limited,...