Antara News are reporting that Airlangga Hartarto, Indonesia’s Coordinator Minister for Economic Affairs has announced that in an attempt to boost Indonesia’s housing industry, the government is officially providing incentives for the property sector until 2024. He stated this policy was approved by President Jokowi during a cabinet meeting on Tuesday (24/10/23.)
Value-added tax for house or property transactions under IDR 2-billion will be 100-percent covered by the government until June next year, Hartarto said during the BNI Investor Daily Summit 2023. “So, we are hoping that the backlog for the property sector could be distributed.”
From June 2024 until December 2024, the government will cover 50-percent of the value-added tax of houses under IDR 2-billion. The government will also support the administrative fee amounting to IDR 4-million for low-income citizens until next year, say Antara News, who add the government hopes these two incentives will boost housing sector growth which has contracted by 0.67-percent, say Antara News.
The housing and construction sectors contribute 14 to 16-percent of GDP in 2023 and provide employment opportunities for 13.8-million people. Both sectors also contribute to tax amounting to 9.3-percent and local revenue amounting to 31.9-percent.
Airlangga hoped that providing incentives would reduce the social gap concerning housing with a required backlog of 12.1-million homes.
Before the cabinet meeting, President Jokowi stated that the housing incentives are provided to boost housing investment.
Source: Antara News