Indonesia renews government-borne VAT on new homes for 2025 under PMK 13/2025

What changed in detail

Minister of Finance Regulation (PMK) No. 13 of 2025, on government-borne VAT on the delivery of landed houses and apartment units for budget year 2025, came into force on 4 February 2025 (Berita Negara 2025 No. 80). It covers deliveries from 1 January 2025. The Directorate General of Taxes (DJP) announced it in press release SP-6/2025 on 22 February 2025 and described it as a continuation of the 2023 and 2024 incentives.

The government bears:

• 1 January to 30 June 2025: 100% of the VAT due.
• 1 July to 31 December 2025: 50% of the VAT due.

In both periods, the relief applies to the part of the selling price up to Rp 2 billion, and only where the selling price is no more than Rp 5 billion.

DJP gave two examples:

• A Rp 2 billion house bought on 14 February 2025 bears no VAT for the buyer.
• On a Rp 2.5 billion house bought on 15 February 2025, the buyer pays an effective 11% on Rp 500 million, which is Rp 55 million.

The incentive does not apply to houses or apartments that already received a VAT exemption.

What it means

The first half of 2025 ran as announced. The second half did not stay at 50%. PMK 60/2025 (id-ppn-dtp-housing-pmk60-2025), promulgated on 25 August 2025, added a separate incentive that took July to December 2025 to 100%. The relief is now spent. For 2026, PMK 90/2025 sets 100% for Masa Pajak January to December 2026, on the same Rp 2 billion and Rp 5 billion limits. Second-half 2025 deliveries that met PMK 60/2025’s conditions received 100%, not the 50% set here.