TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Developers to focus more on low-segment homes amid govt incentives: Consultant
The government announced on Dec. 16 that a partial VAT waiver on certain house purchases would be extended to mid-2025, and then through to the end of the year, but would be reduced by 50 percent in the second half.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Houses for residents affected by the Rempang Eco City National Strategic Project are seen under construction on Oct. 2, 2024, in Tanjung Banun village, Rempang Island, Batam, Riau Islands. The Batam Business Agency (BP) said that as many as three of the 189 families who were relocated agreed to move to new housing. (Antara Foto/Teguh Prihatna)
P
roperty developers are expected put more focus on middle-to-low-income segment housing next year thanks to incentives that the government will roll out next year, consultant Cushman & Wakefield Indonesia said on Tuesday.
The property advisor’s director and head of strategic consulting Arif Rahardjo said on Tuesday that he also expects the middle-to-low-income housing segment to remain prospective regardless of a planned value added tax (VAT) hike next year from 11 percent to 12 percent.
“Developers are projected to focus more on product development for the middle and middle-lower sectors because they are supported by several incentives from the government,” Arif said in a virtual press briefing.
Read also: Property incentives seen to drive demand, but maybe less for apartments
He did not specifically mention which incentives he was referring to, but the government announced on Monday that a partial VAT waiver on certain house purchases would be extended to mid-2025, and then through to the end of the year, but reduced by 50 percent in the second half.
Only house purchases valued at no more than Rp 5 billion (US$311,166) are eligible for the incentive and the waiver will be applicable only for the first Rp 2 billion of the total price.
The incentive was announced together with several others that were expected to assist consumers and manufacturers face the VAT hike.
