BTN Sambut Positive Property VAT Free Stimulus

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) positively welcomes the Government's plan to provide various stimuli for the housing sector, starting from the Government-Borrowed Value Added Tax (PPN DTP) to incentives for administrative costs for managing cheap homes for low-income people (MBR).

Meanwhile, the Government plans to cover VAT for house prices of up to Rp. 2 billion. The policy will take effect from November 2023 to December 2024. The government also provides incentives for MBR in the form of housing administration management costs ranging from Land and Building Rights Obtainment Fees (BPHTB) and others reaching Rp. 4 million.

Director of Consumer Bank BTN Hirwandi Gafar said the stimulus that President Joko Widodo's government would provide was a breath of fresh air for the housing sector.

"We support and appreciate the Government's positive policy to boost the housing sector, because this stimulus will also make it easier for Indonesians to own houses, especially Gen Z, millennials, and low-income people," Hirwandi explained in Jakarta, Wednesday, October 25.

According to Hirwandi, the government's attention to the housing sector is very high because this sector has a multiplier effect on its 185 derivative sub-sectors. In addition, the housing sector also has a significant contribution to employment, uses many local products and involves many parties so that it is expected to be able to accelerate the national economic growth plant.

"The housing sector contribution is indeed very high because the housing sector is very capital-intensive, the workforce needed is around 500,000 workers for each 100,000 houses built and uses 90% of local materials," he said.

Hirwandi said that in addition to making it easier for Indonesians to buy houses, this incentive will also encourage the achievement of credit growth targets at Bank BTN. Hirwandi continued, the stimulus from the Government will also increase the distribution of Home Ownership Loans (KPR), both Non-subsidized and Subsidies, which are the main motorbikes for credit growth at Bank BTN.

"This year and next year, we are targeting credit to grow around double digits," said Hirwandi.

Meanwhile, the plan is for 2 stages to implement the DTP VAT incentives. The first stage, the provision of tax incentives will be given 100 percent in November 2023-June 2024. The second stage, given 50 percent for the July-December 2024 period.