Headline: Indonesia‘s New Housing Policies: Zero Taxes and Quicker Permits
Subheadline: Government aims to boost homeownership with tax exemptions and faster approvals.
Byline: Jakarta, CNBC Indonesia – January 8, 2025
Article:
The Indonesian government has unveiled a new set of policies to support homeownership, including tax exemptions and expedited permit procedures. Minister of Housing and Urban Planning Maruarar Sirait announced these measures, designed to be implemented within the first 90 days of President Prabowo‘s administration.
Key among these policies are:
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Tax Exemptions: BPHTB (Land and Building Ownership Tax) and Bentuk Bangunan Gedung (Building Form Tax) will both be set to 0%, while there will be a six-month exemption period for goods and services tax (PPN) for houses under IDR 2 billion.
- Accelerated Permit Process: The issuance of IMB (Building Permit), now known as Persetujuan Bangunan Gedung (Building Permit Approval), has been significantly streamlined. What once took up to 45 days can now be completed in just 10 days, with some areas like Tangerang achieving processing times as short as four hours.
Minister Sirait emphasized, "As per President Prabowo’s instructions, policies should be pro-people. We are committed to executing these measures promptly."
These changes are planned to stimulate housing demand and enhance Indonesia’s urban infrastructure.
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