Jakarta, Aug. 26 -- Indonesia has extended its full value-added tax (VAT) incentive on residential property purchases until the end of 2025, in a bid to sustain household demand and support economic growth.

The incentive, known as government-borne VAT (PPN DTP), had initially been set at 50% for the second half of 2025. However, under Finance Ministry Regulation (PMK) No. 60/2025, enacted on August 25, the government decided to keep the subsidy at 100%. The policy covers transactions made from July to December 2025.

The scheme provides a full VAT exemption for the portion of a property's selling price up to 2 billion IDR (122,000 USD). Eligible purchases include landed houses or apartments priced at a maximum of 5 billion IDR.

The ince...