Property Tax Incentives Effective for Landed Houses, Weak for Apartments

In 2026, the Indonesian government continues its practice of tax incentives for real estate, known as Pajak Pertambahan Nilai Ditanggung Pemerintah (PPN DTP). While this policy has brought significant benefits to the landed house market, its impact on the apartment market remains minimal. Ferry Salanto, Head of Research at Colliers Indonesia, notes that PPN DTP supports house sales but does not have the same effect on apartment sales. The main issue is the short-term nature of the policy, creating uncertainty for developers with long-term projects. Extending the policy for a longer period may enhance its effectiveness.