Indonesia's VAT Rate to Increase to 12% by Next Year at the Latest
Starting January 1, 2025, the government will raise the Value Added Tax (VAT) rate from the current 11% to 12%. However, the Directorate General of Taxes stated that implementation will follow after the new government takes office. Law No. 7 of 2021 on Harmonization of Tax Regulations stipulates the VAT increase. According to the regulation, the VAT rate can be raised from 11% to 12% before January 1, 2025. The Director of Promotion, Services, and Public Relations of the Directorate General of Taxes stated that regarding the implementation timeline, they are guided by the mandate of the HPP Law, which is no later than January 1, 2025. Although the HPP Law regulates this,
China-Indonesia Business Forum Held in Beijing
Indonesian Industry Calls for Protection of Steel Sector from Chinese Imports
China-Indonesia Cooperation to Establish Electric Vehicle Battery Production Enterprise
Indonesia Plans to Export Electric Motorcycles to Southeast Asia and Africa
Indonesia's Domestic Textile Industry Problems Are Becoming Increasingly Acute
The national textile industry is in serious trouble. The bankruptcy declaration of PT Sri Rejeki Isman Tbk or Sritex has sounded an alarm, requiring immediate government intervention to correctly diagnose and provide a panacea to revitalize the labor-intensive textile industry and domestic textile products. Sritex has long been a symbol of Indonesia's high-quality textile industry. The Executive Director of the Indonesian Textile Association (API) stated that if such a large factory can collapse, it means there are things that must be noted. It is necessary to examine what caused Sritex's downfall—whether it was internal
Jakarta Seizes Rp 2.2 Billion in Illegally Imported Chinese Cosmetics
The Head of BPOM, accompanied by the Supervisory Coordinator (Korwas), PPNS Metro Jaya Regional Police (Polda), and personnel from the National Army Strategic Intelligence Agency (BAIS TNI), held a press conference titled "BPOM Cooperates with National Police to Seize Illegal Import Cosmetics Online Store." Also attending this event were the Deputy for Law Enforcement, Head of Jakarta POM Center, Head of Jakarta Customs Regional Office and Acting Daily Executive, Operation Controller of the Kerinci Task Force of the National Intelligence Agency's Strategic Intelligence (BAIS) and Commander of Geospasika Intelligence Unit, Head of Trade and Industry Unit 1 (Indag) of the Special Criminal Investigation Directorate (Ditreskrimsus) of Polda Metro Jaya, and the Coordinator of the Senior Prosecutor's Office.
Prabowo Orders Four Ministers to Save Local Textile Giant
The government will make every effort to save textile company PT Sri Rejeki Isman (Sritex), as stated by the Minister of Industry after the Semarang District Court (PN) recently declared Sritex bankrupt. Saving Sritex is a direct order from President Prabowo, who has requested several relevant technical ministries to conduct in-depth studies to rescue Sritex. President Prabowo has ordered the Ministry of Industry, Ministry of Finance, Minister of State-Owned Enterprises (BUMN), and Minister of Manpower to immediately study various options and plans to save Sritex. Apart from that, the government's current top priority is to ensure that Sritex employees are not threatened by layoffs (PHK). The government will take immediate measures to keep the company operating and avoid layoffs; this rescue package will be proposed as soon as the four ministries have formulated the rescue method. Previously, PT Sri Rejeki Isman Tbk (SRIL) or Sritex had filed an appeal against the court's decision. In that decision, the Semarang District Court declared Sritex and its three subsidiaries, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya, bankrupt. Sritex management stated in a written statement that they respect the legal decision and responded quickly by conducting internal restructuring and integrating with relevant stakeholders. They have filed an appeal to resolve this matter properly and ensure the interests of stakeholders are met. Sritex management stated that this is their responsibility toward creditors, customers, employees, and suppliers who jointly support the company's business. Currently, around 14,112 employees are directly affected by the company's situation, while the Sritex Group has 50,000 employees. Meanwhile, Sritex declared bankruptcy after being deeply entangled in debt problems in recent years. As of the end of last year, Sritex's short-term liabilities amounted to USD 113.02 million, of which USD 11 million was short-term bank debt with Central Asia Bank (BBCA). Meanwhile, out of USD 1.49 billion in long-term liabilities, USD 858.05 million was bank debt. Most of the long-term bank debt is syndicated debt (Citigroup, DBS Bank, HSBC, and Hang Seng Bank) worth USD 330 million. In addition, BCA, QNB Indonesia, Citibank Indonesia, BJB Indonesia, and Mizuho Bank are listed as the largest creditors, each with SRIL liabilities exceeding USD 30 million. In addition to the above five banks, the company also has debts to 19 other banks, most of which are foreign or private foreign banks. In the latest disclosure, the textile company stated that its increasing debt had led to employee layoffs. As of March 31, 2024, the company's debt details that had not yet matured were worth USD 31.67 million, an increase of USD 8.7 million from December 2023. Debts due within 30 days then rose to USD 630,000. Then 31–90 days increased by USD 1.2 million, and 91–180 days increased by USD 468,000. In addition, SRIL also restructured its short-term debt securities (MTN), which originally matured from May 18, 2021, to August 29, 2027. Due to cash problems, the company proposed a relaxation of MTN principal and interest payments. These financial difficulties ultimately forced Sritex to implement layoffs; over the past year, the company has laid off 2,232 employees, reducing the workforce from 16,370 at the end of 2022 to the remaining 14,138 at the end of last year.
Detailed List of Best-Selling Car Brands in Indonesia for September
Toyota's position at the top of the best-selling car brand rankings has not been replaced, while Indonesia's car sales saw a decline in September. In August, wholesale car sales reached 76,304 units, but in September they fell to just 72,667 units. Similarly, retail sales dropped from 76,608 units to 72,366 units. Cumulative car sales in Indonesia from January to September only reached 633,218 units wholesale and 657,223 units retail. Meanwhile, the position of the best-selling car brand remained unchanged. According to sales data released by the Indonesian Automotive Industry Association (Gaikindo), many Indonesians continue to seek Toy
Indonesia's September Imports Down 8.91% Compared to August
The Central Statistics Agency (BPS) noted that by September 2024, total imports reached USD 18.82 billion. This figure decreased by 8.91% compared to August 2024. The Head of BPS explained that the decline in imports came from oil and gas, amounting to USD 2.53 billion, down 4.53% month-over-month. Non-oil and gas imports stood at USD 16.30 billion, a monthly decrease of 9.55%. Even so, on an annual basis, September 2024 imports still grew by 8.55%. The monthly decline in imports was driven by a decrease in non-oil and gas imports and a decrease in oil and gas imports.
Indonesia's North Java Sea Wall Project Plans to Attract Foreign Investment
President-elect Prabowo plans to cooperate with Chinese investors to develop a massive sea wall along the northern coast of Java Island. The Deputy Chairman of the Gerindra Party Advisory Board stated that he has approached several companies from China. He has been to Beijing twice and Hong Kong twice, and some are interested. In China, the real estate business has saturated, so they are interested in entering the sea wall project. Prabowo's concept for the giant sea wall project will implement a Government and Business Entity Cooperation (KPBU) scheme, where the government holds a 20% stake and the private sector holds 80%. Interested parties
Indonesia Achieves IDR 479 Billion in Transactions at China Exhibition
At the 21st China-ASEAN Expo (CAEXPO) held at the Nanning International Convention and Exhibition Center (NICEC) in China from September 24 to 28, 2024, Indonesia recorded potential transactions worth IDR 479 billion. The Director of National Export Development at the Indonesian Ministry of Trade stated that among the potential transactions of this value, the demanded products include palm oil, coconuts, cloves, coffee, tropical fruits, handicrafts, instant noodles, and processed foods. They are proud of the transaction results achieved, which clearly demonstrate the great potential of Indonesian products. They hope that the success of this exhibition