Government stimulus can help to boost property sector: developer

Government stimulus can help to boost property sector: developer

An apartment unit by PT Triniti Dinamik Tbk. (ANTARA/HO-Triniti)

Jakarta (ANTARA) - Stimulus from the government and Bank Indonesia will help lift the property sector battered by the COVID-19 pandemic, according to PT Triniti Dinamik Tbk, a real estate and property developer company.

President Director of PT Triniti Dinamik Tbk Samuel Stepanus believes that the property business still holds potential since it is a public need and also in the wake of the considerable backlog, a governmental stimulus was deemed necessary.

"Stimulus, such as value added tax incentive or value added tax extended to December 2021, can encourage consumers to buy property, not to mention the loan-to-value (LTV) relaxed by Bank Indonesia that has made decreased down payment possible," he pointed out.

Value added tax incentive from the government can waive value added tax from landed houses and apartments priced at Rp300 million (about US$21 thousand) to Rp2 billion (about US$140 thousand).

The initiative to waive value added tax for the two types of housing will be in effect from March to August 2021.

The regulation was laid down in Finance Ministry Regulation Nomor 21/PMK/010/2021 extended up to December 2021.

Stepanus noted that the company had completed a building project "The Smith" in Tangerang, Banten, and it was gradually being handed out since December 2020.

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