PPN DTP for the Housing Sector is Highly Beneficial

CEO of Indonesia Property Watch, Ali Tranghanda, has revealed that the Value-Added Tax borne by the Government (PPN DTP) in the housing sector is highly beneficial.

“PPN DTP is very helpful. Many end-users in the housing sector, especially those wanting to buy a house quickly, are utilising ready stock or indent options that take advantage of PPN DTP,” said Ali during an online discussion in Jakarta on Thursday.

He proposed to the government that the PPN DTP policy for the housing sector be extended, as it aids housing development and benefits the public.

“We are trying to discuss this with the government as well; if possible, not until the end of 2027. We are trying to extend it for at least another three to five years because the impact is extraordinary; from our data, it is quite helpful,” he stated.

For information, Finance Minister Purbaya Yudhi Sadewa has extended the government-borne value-added tax (PPN DTP) facility by 100 percent for property purchases until 31 December 2027.

According to Purbaya, the facility will be enjoyed by around 40,000 property units per year.

He decided to extend this incentive to maintain the purchasing power of the middle class and support the property sector, which has a significant multiplier effect.

Meanwhile, for properties priced between Rp2 billion and Rp5 billion, the PPN exemption only applies to the first Rp2 billion portion, while the remainder is subject to the normal rate.

The PPN DTP facility applies to Indonesian citizens (WNI) and foreign nationals (WNA) who meet the property ownership requirements in Indonesia.

The incentive can only be utilised for one residential unit and does not apply to purchases of more than one unit, down payments made before the policy takes effect, or units resold within less than one year.