VAT DTP Housing 2026 Is Considered To Provide Certainty For Entrepreneurs

Illustration: Photo: Doc. ANTARA

JAKARTA - Indonesia Property Watch CEO Ali Tranghanda assesses the 100 percent re-implementation of Government-Borrowed Value Added Tax (PPN DTP) incentives for the property sector in 2026 encourages business certainty for housing developers.

He said the policy also creates flexibility for property companies to plan the construction of their housing projects.

This (certainty) is expected. In the implementation of the previously DTP VAT Program, it was carried out only for 6 months (January-June 2025), then it was extended again (until the end of the year), so that it could raise doubts about the effectiveness of the perpetrators," said Ali Tranghanda as reported by ANTARA, Sunday, September 28.

He is optimistic that the certainty of implementing VAT DTP until the end of 2026 can make market participants, including consumers and developers, interested in taking advantage of these incentives.

"Data shows that every period, this (incentive) VAT DTP greatly affects the increase in home sales, especially those that are ready stock," he said.

Despite providing business certainty and could increase sales, Ali said developers must have large readiness and capital adequacy to provide ready stock houses.

In addition, he also asked property companies to banks to ensure that the VAT DTP incentives were distributed on target.

"In terms of supervision, it should have been carried out from developers to banks to ensure (VAT DTP) is not wrong," he said.

As previously reported, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the property DTP VAT applies fully to the purchase of new houses or properties ready to be occupied with a maximum selling price of IDR 2 billion.

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

Fasilitas PPN DTP berlaku bagi Warga Negara Indonesia (WNI) maupun Warga Negara Asing (WNA) yang memenuhi ketentuan kepemilikan properti di Indonesia.

Insentif hanya bisa dimanfaatkan untuk satu unit hunian, tidak berlaku untuk pembelian lebih dari satu unit, pembayaran uang muka sebelum kebijakan berlaku, atau unit yang dijual kembali dalam waktu kurang dari satu tahun.

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.

The VAT DTP facility applies to Indonesian citizens (WNI) and foreign nationals (WNA) who meet the provisions of property ownership in Indonesia.

Incentives can only be used for one residential unit, not valid for purchases of more than one unit, down payment before applicable policy, or units resold in less than a year.