The Ministry Of PKP Needs To Combine The Housing Ecosystem For Effective VAT DTP

Illustration: Photo: Doc. ANTARA

The Housing and Urban Development (HUD) Institute stated that the government needs to integrate the housing ecosystem under the Ministry of Housing and Settlement Areas (PKP) so that the 100 percent Government-borne Value Added Tax (PPN DTP) policy can run effectively.

Chairman of The HUD Institute Zulfi Syarif Koto said the PKP Ministry should consolidate property sector actors from upstream to downstream, including developer companies to brokers, both subsidized and commercial housing, so that the sector can contribute optimally to national economic growth.

"Pak (President) Prabowo (Subianto) hopes that the property industry will contribute 2 percent of economic growth (from the total national economic growth target of 8 percent)," said Zulfi Syarif Koto as quoted by ANTARA, Sunday, September 28.

He said that currently the housing ecosystem in Indonesia is not integrated because the property brokerage company is still under the auspices of the Ministry of Trade (Kemendag), not the Ministry of PKP.

The Ministry of Trade plays a role in regulating and supervising these brokers through the Regulation of the Minister of Trade (Permendag) Number 51/M-DAG/PER/7/2017 concerning Property Trading Intermediaries.

In fact, he assessed that the trade brokerage company was the spearhead of housing marketing so that it played a major role in the downstream part of the property sector.

"There is now the Ministry of PKP, it's an ecosystem upstream to downstream (must be under the Ministry of PKP). Don't hold the downstream (a other ministry)," explained Zulfi.

He also suggested that the association of property trading intermediaries, such as the Indonesian Real Estate Broker Association (AREBI), should transfer its guidance from the Ministry of Trade to the Ministry of PKP.

In order to optimize the contribution of the property sector to the national economy, he also asked AREBI to intensify education to its members regarding the direction of government policies in developing the property sector, one of which is in the program of 3 million houses.

In addition to integrating the national property ecosystem, he said the government must also take firm action against rogue developers and brokers, especially in the commercial housing sector.

He said as many as 80 percent of reports related to disputes in the housing sector received by consumer protection agencies were cases of buying and selling commercial houses.

According to him, this happened because of the lack of institutions that oversee the development of commercial housing, unlike the development of subsidized houses supervised by the Public Housing Savings Management Agency (BP Tapera), the Supreme Audit Agency (BPK), to many credit distributors.

"Please control this if the government wants growth (national economy to penetrate) 8 percent and the contribution of the property industry, both subsidies and commercial, (achieved) 2 percent," added Zulfi Syarif Koto.

Seperti yang diberitakan sebelumnya, Menteri Koordinator Bidang Perekonomian Airlangga Hartarto menyampaikan bahwa insentif PPN DTP properti 100 persen akan diterapkan sepanjang 2026 dan berlaku penuh untuk pembelian rumah atau properti baru siap huni dengan harga jual maksimal Rp2 miliar.

Sementara untuk properti seharga Rp2 miliar-Rp5 miliar, pembebasan PPN hanya berlaku pada bagian harga pertama Rp2 miliar, sedangkan sisanya tetap dikenakan tarif normal.

As previously reported, Coordinating Minister for Economic Affairs Airlangga Hartarto said that 100 percent property DTP VAT incentives will be applied throughout 2026 and will fully apply for the purchase of new ready-to-live houses or properties with a maximum selling price of IDR 2 billion.

Meanwhile, for property worth IDR 2 billion-IDR 5 billion, VAT exemption only applies to the first share of IDR 2 billion, while the rest is still subject to normal rates.