In the first two months of his term, President Prabowo Subianto has issued several policies that have sparked debate among the public and political observers
1. VAT increase to 12% as of January 2025 President Prabowo confirmed that the Value Added Tax (VAT) rate will be increased to 12% starting January 2025, in accordance with applicable laws. Opinion: This VAT increase can be seen as the government's effort to increase state revenue. However, it is necessary to pay attention to the impact on people's purchasing power, especially low-income groups. The government must ensure that these increases do not burden the small population and consider compensation or exemption mechanisms for essential goods and services. 2. Proposal for the election of regional heads by the DPRD President Prabowo proposed that the mechanism for electing regional heads be returned to the model before Reformasi, namely through the Regional People's Representative Council (DPRD), on the grounds of cost efficiency. Opinion: This proposal raises pros and cons. On the one hand, elections through the DPRD can reduce high political costs. However, on the ot...