ARMA Update

[PPN 11 Persen] Prices of Goods Increase as the Impact of VAT Increase by 11%


In order to strengthen the Indonesian economy in the long term and at the same time help financing the State Budget (Anggaran Pendapatan Belanja Negara or “APBN”), starting April 1 2022, the Government of Indonesia has officially increased the rate of Value Added Tax (“VAT”), (Pajak Pertambahan Nilai “PPN) from 10% (ten percent) to 11% (PPN 11 Persen).

This policy was also taken in the context of recovering due to the COVID-19 pandemic as well as the mandate of Law No. 7 of 2021 concerning Harmonization of Tax Regulations (“Law 7/2021”).

Please see our Update regarding this regulation in English (here) and Bahasa Indonesia (here).


This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

April 14, 2022

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