This aerial picture shows residential areas near the city center in Jakarta. (Photo: AFP) Jakarta (VNA) – The Indonesian government has announced a plan to boost the property market by covering the value-added tax (VAT) and the 4 million IDR (252 USD) administration fee for low-income home buyers.
Indonesia will provide incentives for the property sector but the plan has not yet been finalised, President Joko Widodo said on October 24 at the BNI Investor Daily Summit 2023.
Widodo said that tax revenue in October was up 5.6% from last year’s baseline. The increase indicated that local businesses were also growing, according to the president.
However, he noted that Indonesia was still facing challenges such as El Nino, which was affecting rice harvests around the world, thus, many countries had curbed rice exports to secure domestic needs, which might also cause a rice shortage in Indonesia.
The VAT waiver will apply until mid-2024 to purchases of properties costing less than 2 billion IDR, Coordinating Economic Minister Airlangga Hartarto said at the same event./.
