“We hope it will be as soon as possible,” REI secretary-general Paulus Totok Lusida said during the 2019 Property Outlook event in Jakarta on Thursday as reported by kontan.co.id.

Late last year, the government pledged to issue a new tax policy on property, with value-added tax to be marked for luxury properties priced at Rp 30 billion (US$2.12 million), an increase from the current  Rp 20 billion.

The other promised policy is to cut income tax from 5 percent to 1 percent for sales property worth Rp 5 billion. “As a result, developers have managed to avoid constructing property worth Rp 5 billion by narrowing floors or taking other measures to cut down the price,” he added.

Rumah123.com country general manager Ignatius Untung said that, without incentives, the property industry would continue to stagnate this year.

“More than that, we face a political year and after that the people will think about the Idul Fitri annual holiday. It means that people may spend on property in the second half of the year,” he said.

Meanwhile, Asep Nurwanda of the fiscal policy agency said he could not say when the fiscal incentive would be released, but he believed that the property industry would grow this year because of government support in infrastructure construction. (bbn)

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