Pramono examines tax reduction policy amid geopolitical pressures

Jakarta (ANTARA) - Jakarta Governor Pramono Anung Wibowo has stated that he is examining policies to reduce regional taxes as a response to the ongoing global geopolitical pressures. Pramono mentioned that the current global conditions, including conflicts in the Middle East and potential El Nino impacts, pose challenges to Jakarta’s economy. “We are examining regional tax reductions. Jakarta will issue more competitive and attractive tax instruments,” Pramono said at City Hall in Jakarta on Friday. He hopes that this policy will provide relief to the public and business actors amid global uncertainties, while also preserving the momentum of economic growth. “These geopolitical and economic pressures need to be addressed by providing relief. In due time, we will announce a package of tax policies,” Pramono explained. He elaborated that the policy will be packaged in several incentive packages that are currently in the finalisation stage. On the other hand, he assured that Jakarta’s economic conditions remain relatively stable. Economic growth is recorded higher than the national level, while inflation remains controlled. “Jakarta’s inflation at 3.37 percent is lower than the national inflation of 3.48 percent. Its economic growth is higher, but inflation is lower. This means Jakarta’s economy is well-managed,” Pramono stated. Nevertheless, he said that the DKI Jakarta Provincial Government remains cautious in formulating fiscal policies to maintain a balance between providing stimuli and preserving the health of the Regional Revenue and Expenditure Budget (APBD). “We want to keep this good economic momentum intact, but also provide space for the public and business world to survive amid global pressures,” Pramono said.