JAKARTA - The All-Indonesian Housing and Settlement Development Association (Apersi) has proposed that the government extend the government's 100 percent government-borne value-added tax (PPN DTP) by the end of 2025.
Given, the government has provided housing purchase incentives at a price of up to IDR 2 billion free of tax or 100 percent VAT DTP.
The policy will take effect until the end of June and after that the VAT DTP will apply 50 percent.
General Chairperson of Apersi Junaidi Abdillah assessed that the 100 percent DTP VAT should be implemented directly for a full year to facilitate the planning of developers.
"So, if the VAT DTP is actually not every half a year, (but) once a year. Because the developer must also have a plan, right. He (the developer) is afraid of being built, the building is finished, the VAT DTP is gone," Junaidi said in a discussion with the media, Friday, June 20.
On the same occasion, Secretary General of Apersi Deddy Indra Setiawan assessed that the maximum limit for the purchase of tax-free houses was reduced from IDR 2 billion.
The reason is, people who can buy houses at a price of Rp. 2 billion are capable people, so the subsidies are not on target.
"The price of houses, for example, under Rp. 500-700 million, is free from VAT DTP until the end of the year," he said.
Deddy also hopes that there will be good news, namely the extension of the 100 percent DTP VAT by the end of this year.
"Hopefully, later in early July we developers will get good news again (100 percent VAT DTP) extended until the end of December. Right, the PMK regulation for 13 of 2025 is still 100 percent until the end of June. As of July 1, 50 percent until the end of December," he said.
Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto officially announced the extension of the property sector's VAT incentives into the economic policy stimulus package provided by the government.
This was done as an effort to maintain purchasing power after the Value Added Tax (VAT) was implemented at 12 percent starting January 1, 2025.
"For the middle class, the government will resume VAT borne by the government for property up to Rp5 billion," Airlangga said at a press conference on the Economic Stimulus Package for Welfare at the Coordinating Ministry for the Economy Office, Jakarta, Monday, December 16.
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The incentives will be given based on the imposition of a VAT DTP of IDR 2 billion, while a tax of IDR 3 billion is paid.
In his explanation, the purchase of a house with a selling price of up to IDR 5 billion for the first IDR 2 billion, with a discount scheme of 100 percent for January-June 2025.
Meanwhile, a 50 percent discount for the July-December 2025 period. The incentive was given with the aim of encouraging multiplier effects and creating large job opportunities.
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