PPN DTP Extension Boosts Property Purchases Under Rp2 Billion
The extension of the government-borne Value Added Tax (PPN DTP) until 2026 has significantly boosted the Indonesian property market. Data from the Rumah123 platform shows a 16.8% increase in the demand for new properties in 2025 compared to the previous year, with a substantial 30% jump observed since July 2025, as the PPN DTP policy took effect.
The segment for properties priced up to Rp2 billion has seen the greatest interest, particularly from first-time homebuyers aged 18 to 34, who made up 45.5% of total property seekers in 2025. This further confirms that the PPN DTP extension ignited interest in property acquisition among the younger generation.
The Finance Ministry has formally regulated the policy extension under Finance Ministerial Regulation No. 90 Year 2025, which will take effect from January 1, 2026. The incentive provides a 100% VAT exemption for homes priced up to Rp2 billion and partial incentives for properties priced up to Rp5 billion.
Experts indicate that while the initiative significantly impacts the sentiment and trajectory of Indonesia’s property market, real metrics will only become apparent over the course of the year. Despite fiscal incentives, other factors, such as mortgage interest rates and supply-demand balance, continue to play a crucial role.
The Rumah123 platform has implemented several mechanisms to ease the uptake of PPN DTP, including updated property listings, special offers, and mortgage services to aid buyers in navigating available listings.
Investing in properties under complete PPN DTP conditions creates advantageous scenarios for buyers and investors, making the policy extension a key stimulus in the long-term development of the market.
