Airlangga Said That The Property Sector DTP VAT Incentive Was Given 100 Percent Until The End Of 2025

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the Government would provide 100 percent Government-Borrowed Value Added Tax (PPN DTP) incentives for the housing sector.

"Then also related to the VAT DTP facility for property, which should have been 50 percent in the second semester, it was agreed to remain 100 percent. So later we will discuss the technical details," he told the media crew, Friday, July 25.

For information, the Government-Borrowed Value Added Tax (PPN DTP) for the property sector purchases a maximum of IDR 2 billion with a selling price of up to IDR 5 billion and incentives is carried out with a discount scheme of 100 percent from January to June 2025, and a discount of 50 percent for July to December 2025.

Previously, the Government officially extended the Value Added Tax (VAT) incentive for the delivery of landed houses and apartment units borne by the Government (DTP) for the 2025 fiscal year.

This provision is regulated through the issuance of the Minister of Finance Regulation Number 13 of 2025 (PMK-13/2025) which will take effect on February 4, 2025. The extension of this incentive is the sustainability of the VAT incentive policy which was previously granted in 2023 and 2024.

"Transactions in the property sector are transactions that have a large multiplier effect on other economic sectors. As part of the economic policy package for the welfare of the community, the provision of VAT incentives is expected to maintain people's purchasing power and encourage the growth of other economic sectors," said Dwi Astuti's Director of Counseling, Services, and Public Relations.

Through the issuance of PMK-13/2025, the submission of landed houses or apartment units, which will be carried out from January 1 to June 30, 2025, will receive 100 percent VAT-DTP incentives for VAT outstanding from the selling price to IDR 2 billion with a maximum selling price of IDR 5 billion.

Meanwhile, the submission from July 1 to December 31, 2025, will receive a VAT-DTP incentive of 50 percent for VAT owed from the selling price section of up to IDR 2 billion with a maximum selling price of IDR 5 billion.

"For example, if Mr.A bought a house for Rp. 2 billion on February 14, 2025, then the entire VAT was borne by the Government. Another example is if Mrs. B buys a house for Rp. 2.5 billion on February 15, 2025, then the VAT that must be borne by Mrs. B is effective 11 percent multiplied by Rp. 500 million or Rp. 55 million, "explained Dwi.

Dwi also emphasized that this policy does not apply to landed houses or flats that have received VAT exemption facilities.

"The government hopes that the public can take advantage of this opportunity to own a house as well as support the national economy of the property sector and its supporting sectors," concluded Dwi.