In July 2025, following a government meeting, decisions were taken to extend the value-added tax borne by the government for the housing sector. Previously, through Minister of Finance Regulation Number 13 of 2025, the government had provided a 100% VAT discount for home purchases from 1 January to 30 June 2025. Further to this, the Minister of Finance, Sri Mulyani Indrawati, issued Minister of Finance Regulation (PMK) No. 60 of 2025, effective as of 25 August 2025. This regulation stipulates the extension of value-added tax (VAT) incentives for the housing sector. The purchase of landed houses and flats priced at IDR 5 billion will receive a 100% discount. The purpose of this regulation is to promote economic growth by stimulating public purchasing power in the housing sector. The Value Added Tax borne by the Government (PPN DTP) on the transfer of landed houses and apartment units is granted for the tax period from July 2025 to December 2025.
There are several requirements stipulated for this incentive, including a maximum sale price of IDR 5 billion for the landed house or apartment unit. Furthermore, the property must be a newly constructed landed house or newly constructed apartment unit that is delivered in a ready-to-occupy condition and has obtained a house identification code. This incentive is non-transferable and can only be used once by an individual. The value-added tax incentive for the housing sector applies to Indonesian citizens who have a taxpayer identification number (NPWP) or identity number. Foreign nationals holders of an NPWP are also eligible for this incentive, subject to compliance with the laws and regulations governing the ownership of landed houses or apartment units by foreign nationals.
