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Dream - The government will provide incentives for people who want to buy property in the form of houses. Assistance is given in the form of Government-Borne Value Added Tax (VAT DTP). This incentive is given from this year until December 2024 with different amounts.
President Joko Widodo (Jokowi) explained that this assistance from the government is given as part of the government's steps to boost economic growth. According to the President, the property industry is one type of business that has a significant multiplier effect, involving hundreds of other business actors.
The text translates to: "Jokowi's words quoted from Setkab's page, Tuesday, October 24, 2023."
In a separate location, Coordinating Minister for Economic Affairs Airlangga Hartanto explained that the president has decided to implement the DTP VAT program for the purchase of commercial houses below Rp2 billion. This program is implemented in two schemes, namely 100% DTP VAT for this year until June 2024. The second scheme is the 50% DTP VAT program that applies from June to December 2023. Not only for commercial houses, the government has also prepared assistance for Low-Income Communities (MBR) in the form of Administrative Cost Assistance (BBA). The type of BBA provided for low-income communities is worth Rp4 million as a reduction in contract costs.
Source: Ekon.go.id
Further, Airlangga explained that property is one of the sectors that the government is focusing on to maintain the resilience and economic endurance of the nation, which is currently facing global economic downturn and uncertainty.
"Export keys are maintained to continue increasing, this is not easy. Then investments are also maintained to continue increasing because our economic growth is still based on consumption, both government consumption and private consumption," he said.
The Property sector (construction and real estate) throughout the period of 2018-2022 is able to create added value of Rp2.349 - Rp2.865 Trillion per year or equivalent to 14.6-16.3 percent of GDP. Meanwhile, the workforce absorbed per year reaches 13.8 million people.
The Property sector has a significant contribution and multiplier effect in the national economy, where its contribution to GDP is around 14-16%, and its contribution to tax revenue is approximately 9.3% or Rp185 Trillion per year, as well as contributing to regional revenue (PAD) of around Rp92 Trillion or about 31.9% of the regional government's PAD. With such a significant contribution and in anticipation of the impact of global economic downturn and to boost the demand for Housing, said Airlangga, the government needs to prepare fiscal stimulus policies for the purchase of Commercial Houses.
Minister of Economic Affairs Airlangga Hartarto.
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