Febrio Kacaribu, director general of Economic and Fiscal Strategies at the ministry, told reporters the government will soon issue a regulation detailing the facility.
“Yes, 100 percent of VAT will be borne. This policy is a continuation of what has been implemented,” he said at the Housing and Settlement Areas Ministry’s office.
The upcoming relief will provide full VAT exemption throughout the year, unlike the current 2025 incentive, which initially offered 100 percent coverage from January to June and 50 percent in the second half. The government later revised the rule to extend full relief until year-end.
Under the scheme, the state covers VAT—capped at 2 billion rupiah ($120,000)—on homes priced up to 5 billion rupiah ($300,000). The exemption applies to landed houses as well as flats or apartments.
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The housing tax break is part of a broader economic package for 2025–2026 aimed at maintaining momentum, boosting jobs and strengthening investment in the face of global uncertainties.
The Coordinating Minister for Economic Affairs said on Sept. 15 that the package includes eight programs to be accelerated in 2025, four to be extended into 2026, and five designed to expand employment opportunities.
Officials said the continuation of housing incentives reflects the government’s commitment to supporting middle-class demand, easing household burdens, and stabilising one of the country’s most labour-intensive sectors.
The finance ministry expects the measure to stimulate housing purchases, support construction activity and attract private investment, while ensuring that the property sector continues to contribute to national growth.
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Translator: Imamatul S, Tegar Nurfitra
Editor: Rahmad Nasution
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