According to reporting from Antara News, Indonesia has budgeted IDR 3.7-trillion (approx. USD 239-million) for fiscal incentives in the housing sector in 2023 and 2024 to support the purchase of commercial houses and houses for low-income and impoverished people.
Febrio Kacaribu, chairperson of the Fiscal Policy Agency of the Ministry of Finance said in Jakarta on Friday (1/12/23) that “the policy is aimed at stimulating the housing sector to give it a significant multiplier effect as well as a good impact on the growth of the Indonesian economy in 2023 and 2024,”
One of the incentives is outlined in the Regulation of the Minister of Finance Number 120 of 2023 on the Value Added Tax of Landed Houses and Flats Covered by the Government (PPN DTP) for Fiscal Year 2023, say Antara News.
For houses with a price of up to IDR 5-billion (approx. USD 323,000), the PPN DTP given is calculated based on a maximum purchase price of IDR 2-billion.
Home purchases completed between November 2023 and June 2024 will receive a 100-percent PPN DTP (a full VAT exemption), while the incentive for the July to December 2024 period will be 50-percent.
The other incentive is administrative fee assistance (BBA) for low-income individuals seeking affordable housing.
Antara News say that the incentive will be in effect for 14-months, from November 2023 to December 2024, with the assistance of IDR 4-million (approx. USD 258) per house.
From November to December 2023, the incentive will be provided for 62,000-units, and in 2024, it will be allocated for 220,000-units.
BBA is regulated in the Regulation of the Minister of Public Works and Public Housing Number 11 of 2023 on administrative fee assistance in financing home ownership for low-income societies, say Antara News.
Meanwhile, incentive for impoverished societies will be provided through Integrated Simple House (RST) assistance worth IDR 20-million (approx. USD 1,291) per individual.
The incentive will be available from November to December 2023. The issuance of the assistance is being coordinated by the Ministry of Social Affairs.
Source: Antara News