Indonesia raises government-borne VAT on new homes to 100% for September–December 2024 under PMK 61/2024

What changed in detail

Minister of Finance Regulation (PMK) No. 61 of 2024 provides an additional government-borne VAT incentive for budget year 2024 on deliveries of landed houses and apartment units. It was set on 11 September 2024 and promulgated on 19 September 2024 (Berita Negara 2024 No. 560). It took effect on promulgation.

Under Article 7, the government bears 100% of the VAT due on the part of the tax base up to Rp 2 billion. The selling price must be no more than Rp 5 billion. The relief applies for Masa Pajak September 2024 to Masa Pajak December 2024.

To qualify, two things had to happen between 1 September and 31 December 2024:

• the sale deed (AJB) or fully paid binding sale agreement (PPJB) was signed; and
• the ready-to-occupy unit was handed over, evidenced by a handover record (BAST).

The unit had to be new, with a house identity code, and never transferred before. Each individual could use the incentive for one unit. Where a down payment or instalment had been paid before the regulation took effect, the incentive was still available if the first payment was made on or after 1 September 2024.

PMK 61/2024 is a standalone regulation. It does not amend PMK 7/2024, and July and August 2024 stayed at the 50% that PMK 7/2024 set.

What it means

This was a mid-year top-up. It turned the second half of 2024 into a split: 50% for July and August under PMK 7/2024 (id-ppn-dtp-housing-pmk7-2024) and 100% for September to December under this regulation. The relief is spent. The same pattern was repeated in 2025, when PMK 60/2025 lifted July to December 2025 to 100%. For 2026, PMK 90/2025 set 100% for the whole year from the start. On audit of a late-2024 delivery, the AJB/PPJB and BAST dates are what show which regulation and rate applied.