Investment is the second largest component of Indonesian GDP. Outlook for household consumption pretty much depends on the growth of job creation from new investments and policies. 

Merry Xmas and Happy New Year 2025! After a full year of politics, we’re about to enter an uncharted territory of 2025. Externally, we will have second edition of Trump in the White House, while internally that would be the first full year of Prabowo’s presidency. Both might provide some surprises for better or worse.

Last week, the Corruption Eradication Commission (KPK) conducted a search at Bank Indonesia. Reportedly, this activity was related to alleged corruption in the process of distributing Corporate Social Responsibility (CSR) funds from Bank Indonesia. At the time, the Deputy for Enforcement of the KPK, Inspector General (Pol) Rudi Setiawan even said that there were two suspects in this case, one of whom was a member of the House of Representatives. However, not long after, Rudi’s statement was corrected by KPK Spokesperson, Tessa Mahardhika Sugiarto. He said, there were no suspects yet because it was still under general inquisition stage, and that the suspect in question was a suspect in another case that overlapped with the case at Bank Indonesia. The question is, what case is he referring to? It was mentioned that a similar modus operandi also happened at the Financial Services Authority (OJK), does that mean the suspect in question is the one in this case?

The country is now in a shambles as the government insists on increasing VAT rate to 12% next year. Ever since its announcement, this new policy has received backlash from the public. People show their frustration by trending hashtags such as #TolakPPN12Persen, #TolakKenaikanPPN12Persen, and #PajakMencekik on social media platforms, as well as creating a petition against it on change.org, which currently has been signed by more than a hundred thousand of people. Not only that, Indonesian students through BEM SI (Aliansi Badan Eksekutif Mahasiswa Seluruh Indonesia) plan to hold a simultaneous demonstration all across the country if the government remains uncompromising on this issue.

Small taxpayers feel they’re unfairly treated by the government because big companies can walk free with their behaviours in delaying payments. Some big companies have also used various tactics, including bribing tax officials or the tax court, to significantly reduce tax payments. 

One former employee posted on TikTok over the weekend about mass layoff at PT Cakrawala Andalas Televisi, owner of terrestrial TV station ANTV. This shouldn’t be a surprise given financial difficulties of PT Intermedia Capital (MDIA) Tbk, immediate parent of ANTV, which is subsidiary of Bakrie Group’s Visi Media Asia (VIVA). 

As opposition to the rise in VAT from 11% to 12% grows, ministry of finance is required to review some of the policies, including tax holidays, tax allowance, and lower income tax tariffs for companies listed on the Indonesia Stock Exchange (IDX). 

Prabowo administration expects to get additional income of Rp75.3 trillion from the rise of Value Added Tax (VAT) from 11% to 12% starting January 1st, 2025. The government, however, has never reviewed policies deemed contributing to lower of tax collections. 

Alpro Pharmacy, Malaysia’s largest prescription pharmacy chain, has entered Indonesian market with the launch of Apotek Alpro, expanding 200 outlets across Jakarta.

So, the Supreme Court has ruled against PT Sri Reject Isman Tbk (SRIL) or Sritex and affirmed lower court’s decision to declare the textile company bankrupt as demanded by rayon producer PT Indo Bharat Rayon. The government asks state bank BNI to ask other creditors to keep Sritex alive.