Indonesian Government Extends Property Tax Incentives Until 2026

Boost to Property and Manufacturing Sectors

The Indonesian government has announced the extension of the Value-Added Tax (PPN) subsidy for property purchases until December 31, 2026. This policy, announced by Minister of Finance Purbaya Yudhi Sadewa, is seen as a strategic move to maintain momentum in the property sector while providing a positive multiplier effect on the manufacturing industry ¹

Manufacturing Sector Impact

Minister of Industry Agus Gumiwang Kartasasmita welcomed the decision, stating that it would have a significant impact on various manufacturing subsectors that are closely linked to the property sector. The policy is designed to stimulate consumer spending and strengthen economic sectors with strong domestic industrial linkages ²

Economic Rationale

The government's decision reflects its commitment to supporting both the property market and the broader manufacturing sector. By extending the PPN subsidy, the government aims to maintain economic stability and encourage growth in related industries.