Great Eastern Sees Positive Impact from 100% PPN DTP on Property Insurance

Government Policy Stimulates Property Sector

The Indonesian government's decision to extend 100% PPN DTP (Value-Added Tax borne by Government) for landed houses and apartments up to Rp 5 billion through 2026 is being viewed positively by PT Great Eastern General Insurance Indonesia (GEGI). Marketing Director Linggawati Tok stated that this policy will provide fresh momentum for the property sector, which has been affected by incomplete recovery in consumer purchasing power.

Boost to Property Insurance Business

Linggawati sees this policy as a strategic opportunity to boost the property insurance business, particularly in the retail segment. The reduced tax burden is expected to encourage consumers to purchase homes or apartments, prompting developers to launch more projects under Rp 5 billion to attract buyers. This surge in property transactions is likely to increase mortgage financing (KPR) and create more opportunities for property insurance coverage.

Market Implications

The extension of the PPN DTP policy is expected to have a positive impact on the property market by stimulating demand. As developers launch new projects within the Rp 5 billion threshold, the demand for property insurance is likely to rise. GEGI is well-positioned to capitalize on this trend by expanding its insurance offerings in the retail segment.

Conclusion

The government's decision to continue the 100% PPN DTP policy for affordable housing has been welcomed by Great Eastern General Insurance Indonesia. The company views this as a positive development for both the property sector and the insurance industry, with potential long-term benefits for their business growth.