Terbit Rules, Government Officially Extends VAT DTP 100 Percent Housing By The End Of 2025

Illustration: Photo: Doc. ANTARA

JAKARTA - The government has officially extended the government-borne value-added tax policy or VAT DTP for the purchase of landed houses and apartment units (apartments) until the end of 2025.

This is as stated in the Minister of Finance Regulation (PMK) Number 60 of 2025.

The regulation was signed by the Minister of Finance (Menkeu) Sri Mulyani Indrawati on August 15, 2025 and promulgated on August 25, 2025.

"To accelerate the sustainability of economic growth through the stimulation of people's purchasing power in the housing sector, it is necessary to provide additional policies in the form of VAT DTP incentives for the delivery of landed houses and flats from July 2025 to December 2025," the regulation said, quoted on Tuesday, August 26.

Article 7 paragraph (1) explains that the government bears 100 percent VAT for the purchase of new houses or apartments ready for habitation with a selling price of up to IDR 2 billion.

For housing at a price of Rp. 2-5 billion, VAT exemption only applies to the first share of the price of Rp. 2 billion, while the rest is subject to normal rates.

"VAT borne by the government as referred to in paragraph (1) is given for the Tax Period in July 2025 to the Tax Period in December 2025," wrote Article 7 paragraph (2).

The facilities are given to Indonesian citizens and foreigners who meet the provisions of property ownership in Indonesia, provided that everyone can only take advantage of incentives for one residential unit.

In addition, transactions must meet at least three provisions. First, the deed of sale and purchase or the agreement is paid off, signed between July 1-31 December 2025.

Second, the unit handover was carried out in the same period and was proven by the minutes. Third, the developer registered the minutes with the PUPR Ministry or BP Tapera system, and reported tax invoices in accordance with the provisions of the Directorate General of Taxes.

The incentive does not apply if the purchase is made for more than one unit, the down payment is made before July 1, 2025, or the unit is diverted in less than a year.

"This Ministerial Regulation comes into effect on the date of promulgation," reads Article 14.

Previously, the All-Indonesian Housing and Settlement Development Association (Apersi) proposed that the government extend the government-borne value-added tax (PPN DTP) 100 percent 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. '

Pada kesempatan sama, Sekretaris Jenderal Apersi Deddy Indra Setiawan menilai, batasan maksimal pembelian rumah bebas pajak diturunkan dari Rp2 miliar.

Pasalnya, orang-orang yang bisa membeli rumah dengan harga Rp2 miliar adalah orang mampu, sehingga subsidinya kurang tepat sasaran.

"Harga rumah misalnya di bawah Rp500-700 juta itu free PPN DTP sampai akhir tahun," ucapnya.

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.