JAKARTA, Sept. 22 (Xinhua) -- The Indonesian government has extended its value-added tax (VAT) exemption for property purchases until 2026, the Coordinating Ministry for Economic Affairs announced on Monday.
The incentive covers purchases of new homes priced up to 2 billion rupiah (around 121,000 U.S. dollars). For homes valued between 2 billion and 5 billion rupiah (121,000-302,000 dollars), the exemption applies only to the first 2 billion rupiah, while the remaining amount is subject to VAT.
"This government-borne VAT will remain in effect until 2026," Coordinating Minister for Economic Affairs Airlangga Hartarto said.
The measure forms part of the government's 2025-2026 economic stimulus package aimed at bolstering the construction and real estate sectors. ■
