Indonesia on Monday announced economic measures to soften the blow of an increase in the value-added tax rate, including electricity tariff cuts, incentives for labour-intensive industries, and VAT exemption on some property sales.

Indonesia will proceed with its value-added tax hike in 2025, while offering a raft of incentives to mitigate the impact on consumption and economic growth.

Finance Minister Sri Mulyani Indrawati has announced a 50 percent electricity discount for January and February 2025 to protect people's purchasing power

Indonesia will on Monday announce an economic policy package, including its decision on the value-added tax rate, its senior economic minister said after a meeting with President Prabowo Subianto. The government has previously said Indonesia would increase the VAT rate to 12% from the current 11% in January 2025,