The Tax Incentive That Makes 2026 an Unusually Good Year to Buy

Between January 1 and December 31, 2026, buyers of new residential properties in Indonesia can access a government-funded VAT exemption that reduces their purchase cost by up to 11% of the property price. This is not a rumor or a marketing claim — it is an active government policy under PMK (Peraturan Menteri Keuangan) No. 90/2025, titled Pajak Pertambahan Nilai atas Penyerahan Rumah Tapak dan Satuan Rumah Susun yang Ditanggung Pemerintah (PPN DTP). Here is everything you need to know to use it.

What Is PPN DTP?

PPN DTP stands for Pajak Pertambahan Nilai Ditanggung Pemerintah — Value Added Tax Borne by the Government. Instead of the buyer paying 11% VAT on the property price to the developer, the government pays it directly on the buyer's behalf through a tax revenue waiver mechanism. From the buyer's perspective, the transaction price becomes effectively tax-inclusive with no additional VAT charge.

Who Qualifies?

The incentive applies when all of the following conditions are met:

  • Property type: New residential property (rumah tapak — landed house, or satuan rumah susun — apartment unit). Secondary market (used property) transactions are not covered.
  • Seller: The seller must be a PKP (Pengusaha Kena Pajak — VAT-registered entrepreneur), typically a developer. Private individual-to-individual sales of new homes don't qualify because the seller typically isn't a PKP.
  • Transaction date: The AJB (sale deed) or PPJB must be signed between January 1, 2026 and December 31, 2026. Handover must also occur within this window (or there are provisions for indent sales meeting AJB criteria within the period).
  • Property price cap: Maximum transaction value of Rp 5,000,000,000 (Rp 5 billion). Properties above this do not qualify.

The DTP Tiers Explained

The incentive is not binary — there are two tiers based on price:

Tier 1: Properties ≤ Rp 2 billion
100% of PPN is covered by the government. The buyer pays zero VAT. On a Rp 1.8 billion property, this means Rp 198,000,000 in VAT is waived.

Tier 2: Properties between Rp 2 billion and Rp 5 billion
PPN DTP covers only the portion up to Rp 2 billion. The buyer pays PPN on the value above Rp 2 billion.

Calculation for a Rp 3 billion property:

  • DTP covers: Rp 2,000,000,000 × 11% = Rp 220,000,000 (government pays this)
  • Buyer pays: (Rp 3,000,000,000 − Rp 2,000,000,000) × 11% = Rp 110,000,000
  • Total PPN saving vs no-incentive scenario: Rp 220,000,000

How to Claim the Incentive

The burden of compliance falls primarily on the developer, not the buyer. Here is what the process looks like:

  1. The developer identifies the eligible transaction at sale.
  2. The developer issues a tax invoice (Faktur Pajak) with the correct code and marks it as DTP.
  3. The developer files the DTP-related reporting with the Directorate General of Taxes (DJP).
  4. The buyer signs the AJB/PPJB and pays only the property price — not the property price plus PPN.

If a developer is trying to charge you 11% PPN on top of the property price for a transaction within the DTP period and price range, ask them explicitly why they are not applying PMK No. 90/2025. Some smaller developers may not have their PKP status in order — this is something to verify before signing.

Combining DTP with KPR

PPN DTP applies regardless of payment method. Whether you pay cash (tunai), through KPR conventional, or through KPR FLPP subsidized, the DTP incentive applies to the property transaction itself. The bank does not need to do anything special. Your KPR will be calculated on the property price (excluding the waived PPN), reducing your principal and therefore your monthly installment.

Does DTP Apply to Secondary Market (Used Homes)?

No. PPN on secondary market residential property typically doesn't apply in the same way to private sellers (who are not PKP). The DTP program specifically covers sales by PKP developers of new residential property. If you're buying a used home from an individual seller, DTP is not relevant to your transaction. Your main tax costs are BPHTB (5% buyer) and PPh Final (2.5% seller).

What Happens After December 31, 2026?

The PMK No. 90/2025 program runs through December 31, 2026. The Indonesian government has run DTP programs in previous years (including 2021–2024 under different PMK numbers). Whether the program will be renewed, reduced, or discontinued in 2027 depends on fiscal policy decisions not yet announced. The prudent approach for buyers who are ready is not to assume renewal — use the incentive while it is confirmed in effect.