Indonesia: Indonesia No Longer Plans to Impose 12 Percent VAT for Luxury Agricultural Products

  |   Attaché Report (GAIN)   |   ID2025-0003

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Office of Agricultural Affairs, Jakarta   |   (011-62-21) 3435-9161

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Indonesia: Indonesia No Longer Plans to Impose 12 Percent VAT for Luxury Agricultural Products
This report serves as an update to FAS Jakarta’s previous report outlining Indonesia’s plans to impose a 12-percent value-added tax (VAT) for luxury agricultural products (please see GAIN Report ID2024-0053). This would have been a significant change, since agricultural products had not previously been subject to any VAT. Through an official press conference on December 31, 2024, President Prabowo Subianto announced a reversal which effectively means there will be no changes to VAT applications for agricultural goods, although the VAT for certain processed food products previously taxed at 11 percent will remain in place at that rate. Fresh agricultural products that were not previously subject to any VAT will remain exempt.
East Asia and the Pacific, Indonesia
Processed Food Products, Dairy, Livestock and Poultry, Fruits and Vegetables, Fresh Fruit

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