TEMPO.CO, Jakarta - PDIP DPP Chair, Deddy Yevri Sitorus, denied allegations that his party faction proposed an increase in value-added tax (VAT) to 12 percent. He said that the increase in the VAT rate from 11 percent to 12 percent through the ratification of Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (HPP) was not based on the PDIP faction's initiative.

He stated that the discussion of the law was previously proposed by the Joko Widodo government in the previous period. PDIP, he said, as a faction involved in the discussion, was then appointed as Chair of the Working Committee or Panja.

"So, it is wrong to say that the initiator was PDI Perjuangan (PDIP), because the one who proposed the increase was the government and through the Ministry of Finance," said Deddy in a written statement, on Sunday, December 22, 2024.

He explained that at that time, the law was approved with the assumption that the economic conditions in Indonesia and the world were in good condition. However, Deddy said, over time, there were a number of conditions that made many parties, including PDIP, request that the implementation of the VAT increase to 12 percent be reviewed.

For example, such as the people's purchasing power which has slumped and the storm of layoffs in a number of regions. In addition, the rupiah exchange rate against the US dollar which is currently continuing to weaken. The request, said Deddy, does not mean that the PDIP faction rejects the VAT to 12 percent.

"So, it is not at all blaming the Prabowo government, no, because that was given from the previous period's agreement," he said.

Previously, the Gerindra Party faction of the DPR said that PDIP was like throwing stones and hiding their hands when taking a stance on the VAT increase. "PDIP continues to seek the sympathy of the people, but they forget that they were the ones who proposed the 12 percent VAT increase," said a member of the Gerindra Party faction of the DPR, Bahtra Banong, in a written statement on Saturday, December 21, 2024, as quoted by Antara.

He said that the Chairperson of the Working Committee regarding the 12 percent VAT increase at that time was a PDIP cadre and also Deputy Chairperson of Commission XI of the DPR, namely Dolfie Othniel. Therefore, he considered that the PDIP's current stance regarding the VAT increase was something that was not appropriate to be shown to the public.

"They asked to cancel it, even though they proposed it and even the chairperson of the working committee was their cadre. Why are they rejecting it now?" he said.

According to Bahtra, the PDIP should appreciate Prabowo. The reason is, Prabowo dared to take responsibility for implementing the 12 percent VAT policy.

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