Minister Of PKP Writes To Minister Of Finance So That 0 Percent VAT Of Houses Below IDR 2 Billion Can Be Continued

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait. (Photo: Doc. Antara)

JAKARTA - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) wrote to the Minister of Finance (Menkeu) Sri Mulyani. Indrawati, for a 0 percent value added tax (PPN), aka free for houses whose value was Rp. 2 billion and below, was continued.

"I also pray that I have submitted a letter to the Minister of Finance Sri Mulyani so that 0 percent VAT will be continued," said Ara, in Jakarta, quoted by Antara, Wednesday, July 2.

The letter for 0 percent VAT to be continued was submitted to the Minister of Finance around last week, based on proposals from developers and also from consumers received by the Ministry of PKP.

"So we have conveyed the letter if I'm not mistaken last week," said Ara.

VAT Borne by the Government or VAT-DTP is a policy on the value added tax that should be paid by the buyer of the house borne by the government.

With this policy, the price of the house becomes more affordable because buyers do not need to pay VAT for certain parts of the price of the house purchased.

This policy is regulated in the Minister of Finance Regulation (PMK) Number 13 of 2025 and is a continuation of similar incentives that have been given in 2023 and 2024.

With this incentive, people can buy houses at a more affordable price. For example, if someone buys a house at a price of IDR 2 billion in February 2025, the entire VAT of IDR 220 million will be borne by the government.

Meanwhile, if someone buys a house at a price of Rp. 2.5 billion, he only needs to pay VAT for a difference of Rp. 500 million, which is Rp. 55 million.

With the reduced tax burden, the middle class has a greater opportunity to buy a house, especially in the midst of economic challenges that make purchasing power decrease.