VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

VOI News, Jakarta: Acting Deputy for Tourism Products and Activity Organizers of the Indonesian Ministry of Tourism,  Vincent Jemadu has explained that the Indonesian government has set an increase in the Value Added Tax (VAT) rate to 12 percent to be effective on January 1, 2025. 

Responding to this, Acting Deputy for Tourism Products and Activity Organizers of the Indonesian Ministry of Tourism,  Vincent Jemadu, in the “2024 Year-End Press Conference”in Jakarta on  Friday (20/12/2024) urged tourism industry players to diversify products in anticipation of the impact of the policy. 

According to Vincent Jemadu, the increase in the amount of tax may trigger a shift in demand and supply. So, industry players are encouraged to diversify the products or services offered without reducing the quality of the product itself.

“There may be a shift. People, who like premium products that are expensive, will shift to products or services that are below their level. And our industry friends are invited to start diversifying products, but not reducing the satisfaction or quality of the product itself,” he said.

Meanwhile, Deputy Minister of Tourism, Ni Luh Puspa revealed that the 12 percent VAT policy will have a direct impact on domestic tourists. She also stated that the Ministry of Tourism will prepare anticipations related to the impact that the tourism sector can feel from the 12 percent VAT policy; one of them is by preparing cheap tour packages. (VOI-Dora -Mar-AF-Rahmana)