Gov’t Continues Providing Incentive for Housing Sector

Photo by: Ministry of Public Works and Public Housing

In a bid to support housing sector, the Government has decided that it will continue providing the Government-borne Value Added Tax (PPN DTP) incentive.

The policy was based on Regulation of Minister of Finance Number 6/PMK.010/2022 on Value Added Tax Borne by the Government on Supplies of Landed House and Flats Units in 2022 Fiscal Year.

“The incentive is expected to increase people’s purchasing power and support housing sector that will bring leverage effects to the national economy. We are striving to maintain the momentum of a robust economic recovery in 2022, particularly during the first and second quarters,” Head of Fiscal Policy Office of Ministry of Finance, Febrio Kacaribu, said in his press release on Tuesday (02/08).

In line with improving condition of construction and real estate sectors which has successfully exceeded the growth of that before the onset of the pandemic, the Government will continue to provide PPN DTP incentive by adopting tapering measure. Thus, the 2022 PPN DTP incentive rate will be half of that in 2021 which was at 50 percent for flats and landed houses with a value of up to Rp2 billion and 25 percent for homes worth Rp2-5 billion.

“We hope the public can take benefits from the incentive to improve Indonesia’s economy in 2022,” he said.

For the record, the Government during March-December last year had provided PPN DTP incentive for property sector. At that time, flats and landed houses with a value of up to Rp2 billion were given an incentive of 100 percent whereas homes with a value of Rp2-5 billion were given an incentive of 50 percent. (Minister of Finance PR/UN) (RAS/MMB)