Jakarta (ANTARA) - Indonesian Finance Minister Sri Mulyani Indrawati stated that technical regulations related to incentives for the Government-Borne Value Added Tax (PPN DTP/VAT DTP) are being prepared and will come into effect in November 2023.

"We have designed the DTP VAT incentive for housing, and it is hoped that it will be issued this November to maintain the momentum of economic growth," Sri Mulyani stated at the Financial System Stability Committee (KSSK) press conference in Jakarta on Friday.

She expressed hope that the Minister of Finance Regulation (PMK) would receive a positive response in terms of supply and demand in the housing sector.

The state treasurer explained that the 100 percent VAT DTP incentive scheme will only be provided for house purchases priced under Rp2 billion.

Meanwhile, for houses with prices starting from Rp2 billion until Rp5 billion, buyers still have to pay VAT without any incentives.

"This VAT DTP facility is provided to buyers of one house per one NIK (National Identity Number) or one NPWP (Tax Identification Number). The program runs from November 2023 to December 2024, so 14 months," Sri Mulyani remarked.

She stated that from November 2023 to June 2024, the amount of VAT DTP given is 100 percent.

After that period, the amount of the VAT DTP incentive will be cut to 50 percent.

The Ministry of Finance has disbursed a budget of Rp3.2 trillion for incentives in the property sector. The figure is Rp0.6 trillion for 2023 and Rp2.6 trillion for 2024.

This incentive is provided to strengthen the housing sector as a support for economic growth amid the increasing risk of global economic uncertainty.

Related news: Govt completes 32 ministerial housing units at IKN
Related news: Ministry plans to launch green housing program in 2024: Official

Translator: Bayu Saputra, Cindy Frishanti Octavia
Editor: Rahmad Nasution
Copyright © ANTARA 2023