Jakarta. The government has officially extended the full Government-borne Value Added Tax (PPN DTP) incentive for house purchases until Dec. 31, 2027, in a move to sustain property market growth and support household purchasing power.

Finance Minister Purbaya Yudhi Sadewa announced the policy on Tuesday during the October edition of the State Budget (APBN KiTa) press briefing in Jakarta. “The facility was initially available until Dec. 31, 2026, but we are extending it for another year,” Purbaya said.

He added that the policy is expected to benefit around 40,000 housing units annually, providing a significant boost to Indonesia’s property sector, known for its strong multiplier effect on the national economy.

“This serves as a fresh stimulus for the property market, which we hope will continue to generate positive economic impact,” he said.

Director-General of Fiscal Policy Febrio Kacaribu said the Finance Ministry would soon issue a new Minister of Finance Regulation (PMK) to formalize the extension through the end of 2027. According to Febrio, the extension will offer business certainty for developers, enabling them to accelerate housing projects and plan investments more aggressively.

The previous scheme, regulated under Minister of Finance (MoF) Regulation No. 13/2025, granted a 100 percent VAT exemption for home purchases made between Jan. 1 and June 30, 2025, and 50 percent for those between July 1 and Dec. 31, 2025. The government later decided to maintain the full exemption through the end of 2025.

Under the incentive, buyers of landed houses or apartment units priced up to Rp 5 billion ($300,000) are eligible, with a maximum taxable base (DPP) of Rp 2 billion covered by the VAT discount.

Purbaya reaffirmed that the government currently sees no need to introduce new taxes, echoing the stance of former Finance Minister Sri Mulyani Indrawati, who previously stated that no new levies would be imposed in 2026 despite higher revenue targets in the proposed 2026 state budget.

The 2026 budget projects total revenue at Rp 3,147.7 trillion ($189.9 billion), up 9.8 percent from the previous year's target, with tax revenue expected to reach Rp 2,357.7 trillion, growing 13.5 percent year-on-year.