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Government announces stimulus to boost property market
The government hopes to boost the property market by covering VAT and administration fees for low-income home buyers.
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This aerial picture shows residential areas near the city center in Jakarta on Dec. 2, 2021. (AFP/Bay Ismoyo )
T
he government has announced plans to boost the property market by covering the value-added tax (VAT) and the Rp 4 million (US$252) administration fee for low-income home buyers.
"Today, we held a meeting to decide what [was the right way] to spur on the economy. We will provide incentives [for the property sector], but we haven't finalized it yet," President Joko "Jokowi" Widodo said on Tuesday at the BNI Investor Daily Summit 2023.
Jokowi stated that tax revenue in October was up 5.6 percent from last year's baseline. The increase indicated that local businesses were also growing, according to the President.
However, Jokowi noted that despite the achievement, Indonesia was still facing challenges such as El Niño, 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.
Read also: Chinese investment in RI real estate dries up as property crisis hits home
On top of that, the war between Ukraine and Russia was ongoing and the global situation was worsened by the conflict between Israel and Hamas in Palestine, which threatened to widen to involve Lebanon and Syria, Jokowi cautioned. Should that happen, it would increase oil prices and complicate economic conditions in many countries.
"The last time I checked, the oil price was still $89, but if it reaches $150, this is something we need to beware of from a monetary and fiscal point of view," Jokowi said.
