Government Extends 100% PPN Housing Incentive to Dec 31, 2027

JAKARTA, 14 October 2025 – The government has extended the 100 % PPN incentive for government‑subsidized (DTP) housing until 31 December 2027. The incentive had previously been set to expire at the end of 2026.

Finance Minister Purbaya Yudhi Sadewa said the extension aims to raise middle‑class purchasing power and support the property sector. The benefit applies to homes priced up to Rp5 billion, with the government covering 100 % of the PPN on the portion up to Rp2 billion. Director General Febrio Kacaribu noted that the certainty will enable developers to build roughly 40,000 units annually.

Consumers can continue to receive full PPN exemption on homes up to Rp2 billion, while a ministerial regulation (PMK) will be issued to formalize the rule. The measure is expected to give developers business certainty and provide an additional boost to the national economy.