DKI Provincial Government Eases Burden on First-Time Home Buyers through 50% BPHTB Incentive

The DKI Jakarta Provincial Government is providing a facility for a 50% reduction in the Acquisition Duty on Land and Buildings (BPHTB) for residents purchasing their first home in Jakarta.

BPHTB is a tax imposed on the acquisition of rights to land and/or buildings, including through property sale and purchase transactions. For first homes, the BPHTB rate is 5% calculated from the acquisition value after deducting the Non-Taxable Object Acquisition Value (NPOPTKP).

This facility is granted to taxpayers who meet several requirements as stipulated in the Governor of DKI Jakarta Decree Number 840 of 2025. The reduction applies to the first acquisition of rights to a landed house or apartment unit through a sale and purchase mechanism, with the Object Acquisition Value (NPOP) up to a maximum of IDR 500 million.

As an illustration, for the purchase of a first home priced at IDR 500 million, the original BPHTB of IDR 12.5 million can be reduced to IDR 6.25 million after receiving the 50% reduction facility. This reduction is considered helpful in covering other costs that arise when buying a home, such as down payments, notary fees, and moving expenses.

Taxpayers who can utilise this policy must meet all the established criteria, namely possessing a DKI Jakarta Provincial ID card, being at least 18 years old or married, having never previously acquired rights to land and/or buildings, acquiring the property through sale and purchase, and purchasing a landed house or apartment unit with an NPOP up to a maximum of IDR 500 million.

This reduction facility is provided automatically. Thus, members of the public who meet the requirements do not need to submit a separate application or queue to process the reduction. They simply need to make the reduced payment and report it via e-BPHTB.

This facility can only be utilised once, namely at the time of the first acquisition of property rights. Therefore, members of the public who are buying a home in Jakarta for the first time are urged to ensure all requirements are met in order to benefit from this policy.

This BPHTB reduction policy is one form of support from the DKI Jakarta Provincial Government in helping the community own their first home while encouraging easier access to home ownership in the Capital.