Indonesia gives 100% government-borne VAT on new homes up to Rp 5 billion for all of 2026 under PMK 90/2025

What changed in detail

Minister of Finance Regulation (PMK) No. 90 of 2025 was set on 18 December 2025 and promulgated on 31 December 2025 (Berita Negara 2025 No. 1213). Under Pasal 14 it took effect on 1 January 2026. It provides government-borne VAT (PPN DTP) on deliveries of landed houses (rumah tapak) and apartment units (satuan rumah susun) for budget year 2026.

• Amount (Pasal 7(1)). The government bears 100% of the VAT due on the part of the sale price up to Rp 2 billion, for a home with a sale price of no more than Rp 5 billion.
• Period (Pasal 7(2)). Tax periods January to December 2026. Under Pasal 3, both the sale deed (or a fully paid notarised sale agreement) and the physical handover, evidenced by a handover report, must fall between 1 January and 31 December 2026. The developer registers the handover report in the housing ministry’s or Tapera’s application by the end of the following month.
• The home (Pasal 4). It must be new and handed over ready to occupy: it has a house identity code and is delivered for the first time by the developer that built it, with no earlier transfer.
• The buyer (Pasal 5–6). One unit per individual. Indonesian citizens with a tax number or national ID number qualify, and foreign citizens with a tax number may qualify where the rules on foreign home ownership allow. A buyer who used an earlier PPN DTP regulation may use this one for a different home.

What it means

The incentive is in force in November 2026 and covers handovers until 31 December 2026. It continues the 100% rate that PMK 60/2025 set for July to December 2025, so the full relief has run without a break from mid-2025 through 2026.

On a Rp 5 billion home the relief covers only the VAT on the first Rp 2 billion; the buyer pays VAT on the remainder. Timing is the main risk: a sale deed signed in 2026 with handover slipping into 2027 falls outside this regulation, and a developer that does not register the handover report on time puts the relief for that unit at risk.