VAT on private education

[Helpful Herbert]

Taking inspiration from the UK, Indonesia is now imposing 5%\12% VAT (PPN) on private education.
Anyone have more details of how it will be applied?

 

[Jaime C]

Haven’t heard about anything like that. The prices are high enough already.

 

[Helpful Herbert]

So the latest news is that the government has backed down and exempted all education services from PPN for 2025 (more specifically they are subject to PPN but at a rate of 0%, whereas the original rate announced in December 2024 was 5% for education above 120jt and 12% above 600jt).
This of course opens the possibility of changing it in 2026.

Sri Mulyani: Jasa Pendidikan Pemerintah & Swasta PPN 0 Persen di 2025

Menkeu Sri Mulyani mengatakan jasa pendidikan yang dikelola pemerintah dan swasta menjadi bagian dari barang/jasa tetap tarif PPN 0 persen pada 2025.

www.cnnindonesia.com

 

[centurion]

Haven’t heard about anything like that. The prices are high enough already.

The rich should pay their fair share.

 

[Jaime C]

The rich should pay their fair share.

Well, I wouldn’t put us in the rich category, certainly. I think our tuition for the 2024/2025 school year was about 100jt, including development fees. Going into Jr High, and high school, the prices will go up, likely eclipsing the 120jt level.

 

[Helpful Herbert]

For a country with such terrible education standards, and which wishes to escape developing country status, it seems a bit strange to want to tax families that do try and get their kids educated to a good level.
For the very top ones like JIS or BIS (600jt+), it wouldn't make much difference as fees are generally paid by employers / embassies / local oligarchs. But taxing the mid-range schools wouldn't be a good plan.