Indonesia to Waive VAT on New Homes to Spur Property Sales

Indonesia will waive value-added taxes on new home sales, its latest move to spur property investments and jumpstart economic activity.

The government will shoulder the VAT on new landed houses and apartments priced below 2 billion rupiah ($140,300), while VAT will be reduced by half for properties costing 2 billion to 5 billion rupiah, Finance Minister Sri Mulyani Indrawati said Monday. Buyers can use the perk for only one property, which can’t be resold for at least a year. The policy will be effective from March to August.