Source: Kontan.co.id | January 7, 2025

The Ministry of Industry (Kemenperin) revealed that the extension of property incentives will have a multiplier effect on the national manufacturing industry.

The incentives include Government-Borne Value Added Tax (PPN DTP) for the purchase of landed houses and apartments until December 31, 2026.

Minister of Industry Agus Gumiwang Kartasasmita stated that the government’s policy of extending property incentives is part of an effort to boost public purchasing power and strengthen economic sectors that have broad links with domestic industry.

“This policy is crucial for maintaining the sustainability of the property sector, which is closely linked to various manufacturing subsectors,” Agus said in a written statement released on Wednesday (January 7, 2026).

Agus stated that the property sector has a long supply chain and involves many industrial sub-sectors, including cement, ceramics, glass, base metals, furniture, building materials, electrical equipment, and household appliances, as well as other supporting sectors.

Any stimulus provided to the property sector will have a direct impact on increasing demand for domestic industrial products.

“The extension of the VAT DTP will spur property development and transaction activity, ultimately increasing capacity utilization in various supporting industries. This also contributes to employment and maintains production stability in the manufacturing sector,” explained Agus.

According to Agus, the VAT DTP policy also provides certainty for industry players in developing business and investment plans.

With ongoing fiscal stimulus until 2026, industry players have more room to increase production capacity, strengthen domestic supply chains, and enhance the competitiveness of national products.

Agus added that measured and targeted fiscal policies are essential amidst the dynamics of the global economy.

Agus believes the extension of the VAT DTP incentive is in line with the government’s efforts to maintain national economic growth based on domestic demand, while simultaneously strengthening the national industrial structure to make it more resilient and sustainable.

“Policy synergy between the Ministry of Finance and the Ministry of Industry is key to creating a conducive business climate. This DTP VAT incentive not only supports people in owning homes but also strengthens the foundation of the national industry as a whole,” Agus emphasized.

For your information, the extension of this incentive is stipulated in Minister of Finance Regulation (PMK) Number 90 of 2025, which took effect on January 1, 2026.

Through this policy, the government covers 100% of the VAT payable on the transfer of landed houses and apartments with a maximum selling price of IDR 5 billion, specifically for the portion priced up to IDR 2 billion.

This DTP VAT incentive applies to new, ready-to-occupy landed houses and apartments, which are the first to be delivered by the developer and have never been transferred. The handover of the unit must be evidenced by a deed of sale or a full sale and purchase agreement, as well as a handover report conducted between January 1 and December 31, 2026.