Jakarta, Indonesia Sentinel — The upcoming increase in Indonesia’s Value-Added Tax (VAT) to 12% has triggered a wave of online protests, with netizens urging frugal living and reduced spending as a form of resistance. The calls for a “boycott” have been trending on social media platform X (formerly Twitter) in recent days.
Starting January 1, 2025, Value added Tax (VAT) will rise to 12% from its current rate of 11%, as mandated by the Harmonized Tax Regulations Law (UU HPP) No. 7 of 2021. The announcement has drawn widespread criticism, with many concerned that the tax hike will erode purchasing power by driving up the prices of goods and services.
One viral post on X encouraged Indonesians to refrain from making non-essential purchases, to protest the policy. “If you’re thinking of upgrading your phone, hold off. Same goes for a new motorbike or car—just wait a year. Use all the subsidies you can; don’t feel ashamed. That’s our money anyway. When else can we boycott our own government?” an online users posted on X.
The user also advocated adopting frugal living habits, emphasizing simplicity and resourcefulness in everyday life. “Use things until they’re completely worn out. If something can be repaired, fix it and keep using it. Save any extra money you have. Enjoy free, simple pleasures. For weekends, take a walk in the park. For meals, eat at local food stalls that don’t charge tax—there are plenty of clean, delicious options,” the post continued.
With this recent social media uproar, frugal living concept has regained attention online after seeing un uprising during the Covid-19 pandemic.
Frugal living is a lifestyle centered on mindful spending and maximizing the value of every money resources. It focuses on prioritizing needs over wants, enabling individuals to live economically while maintaining financial well-being.
This lifestyle has several principle which is:
- Buy Only What is Needed: The core principle of frugal living is purchasing only essential items and carefully evaluating priorities before making a purchase.
- Avoid Waste: Practitioners of frugal living steer clear of extravagance, avoiding luxury goods and unnecessary expenses. They focus on deriving real value from every purchase.
- Seek Affordable Alternatives: Frugal living emphasizes finding cost-effective options without sacrificing quality, such as taking advantage of discounts and comparing prices.
- Improve Financial Habits: This lifestyle goes beyond spending habits, encouraging better financial practices like debt management, saving, and wise investing.
- Maintain Financial Balance: Frugal living underscores the importance of aligning income and expenses, creating budgets, and ensuring spending stays within one’s financial means.
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While often misunderstood as stinginess, frugal living is fundamentally different. Frugal living is about smart financial management—purchasing necessities, valuing quality, and finding ways to save without neglecting essential needs.
Stinginess, on the other hand, involves extreme reluctance to spend money, even on important necessities. It often includes a refusal to share or assist others.
In contrast, frugal living channels expenditures into meaningful needs while avoiding waste, promoting a balanced and intentional approach to finances.
As Indonesia braces for the VAT hike, the growing call for frugal living underscores the public’s public’s concerns about its impact of the policies on their daily life. Whether this movement will influence government decisions or reshape consumer behavior remains to be seen, but it highlights the resilience and society responses navigating economic challenges.
(Raidi/Agung)
