Property Incentives Can Be Ineffective

Head of the Fiscal Policy Agency, Febrio Kacaribu, explained that the PPN DTP incentive for the housing sector for 2022

is given for nine months for the delivery of landed houses and flat housing units. The handover of the unit, among others, occurs when the deed of sale and purchase is signed, or the sale and purchase agreement is signed in full before a notary, as well as the transfer of the right to use or control the landed house or apartment ready for habitation. The DTP VAT incentive is given 50 percent of the VAT payable on the delivery of landed houses or flats with a maximum selling price of IDR 2 billion. For the price of landed houses or flats above Rp. 2 billion to Rp. 5 billion, the incentive is set at 25 percent of VAT. "We hope that the community will take advantage of this incentive to help the Indonesian economy recover stronger in 2022," said Febrio, General Chair of the Indonesian Real Estate DPP (REI) Paulus Totok Lusida, assessing that the extension of the DTP VAT incentive until September 2022 was in accordance with the agreement with the developer. However, its implementation this year is feared to be difficult to be effective due to licensing constraints, namely the transition from a building permit (IMB) to a building approval (PBG). PBG management refers to Government Regulation (PP) Number 16 of 2021 concerning Implementing Regulations of Law No. 28/2002 concerning Buildings. PBG is a permit granted to building owners to build new, modify, expand, reduce, and/or maintain buildings in accordance with building technical standards. Totok said that the government's decision to replace the IMB to PBG since August 2021 has not yet been followed up with a regional regulation (perda).

|•SOURCE•| Articles :KONTAN | Image :JAKARTA POST |

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