Bambang Permadi Soemantri Brodjonegoro (Kompas/Iwan Setiawan)

A luxury tax (PPNBM) of 20 percent is imposed on property transactions for houses and apartments worth more than Rp 10 billion (US$697,300), stated Finance Minister Bambang Brodjonegoro on Thursday.

"So, it's now clear and explicit; no more speculation [on the prices] of [property] worth Rp 2 billion or Rp 5 billion. This should serve as an incentive for the property sector," said Bambang at his office as quoted by tempo.co.

Regarding property ownership by foreigners, Bambang said that the ministry still had to revise the regulations.

"We are currently coordinating with other ministries since it involves more than just the Finance Ministry," said Bambang.

The ministry also revealed that it had prepared 381 hectares of land worth Rp 1.43 trillion to support the government's '€œ1 million houses'€ project.

"The locations will be spread across Greater Jakarta as well as other big cities in the country," said Bambang.

The locations in Greater Jakarta will be Bogor, on an 11 ha site, and Bekasi, on a 20 ha site. Outside Jakarta, sites include 75 ha in Lampung, 18 ha in Jombang, East Java, 30 ha in Palembang, South Sumatra, 13 ha in Padang, West Sumatra, 6 ha in Batam, Riau Islands and 36 ha in Deli Serdang, North Sumatra.

As for the project's development, Bambang said that it could be conducted by the Public Works and Public Housing Ministry or state-owned enterprises as long as the houses benefited people on low incomes.

"If the Jakarta [provincial administration] wanted to use [the houses], we would give them as a gift,'€ said Bambang. (kes)(++++)

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