Buying a House in DKI Now Eligible for 50% Tax Discount

Good news has arrived for residents planning to buy their first home in the Capital. The DKI Jakarta Provincial Government is now offering an incentive in the form of a discount on the Acquisition Duty on Land and Buildings (BPHTB) tax of up to 50 per cent. For context, BPHTB is a levy imposed on land and building sale and purchase transactions. This obligation applies to both sellers and buyers, as regulated under Law No. 28 of 2009 on Regional Taxes and Retributions. This tax is collected by district or city-level regional governments as one of the sources of Original Regional Income (PAD). The BPHTB reduction policy is contained in the Governor of DKI Jakarta’s Decision No. 840 of 2025 regarding Criteria for Granting Reductions and Exemptions on the Principal BPHTB. Article 1 states: Referring to the provisions signed by DKI Jakarta Governor Pramono Anung, residents with a DKI Jakarta ID card who buy a house for the first time can enjoy a 50 per cent BPHTB discount. The amount of this relief is confirmed in Article 4 letter b of the Governor of DKI Jakarta’s Decision No. 840 of 2025. For illustration, if someone buys a first home for Rp500 million, the original BPHTB of Rp12.5 million can be discounted to Rp6.25 million after the reduction. This policy is expected to ease the burden on buyers, so the remaining funds can be used for other needs, such as renovations or furnishing the home. It should be noted that this BPHTB discount facility can only be utilised once, namely when buying the first home in Jakarta. The payment process is based on the reduced value, and reporting is done through the e-BPHTB system. Moreover, under the same regulation, taxpayers can receive up to a 75 per cent BPHTB discount if the land is used for social purposes. “Taxpayers who acquire rights to land and/or buildings for social, educational, or health purposes,” states the Governor of DKI Jakarta’s Decision No. 840 of 2025.