inp.polri.go.id - Jakarta. The government is increasing the number of incentives and subsidies in the construction and housing sectors. The goal is to strengthen the performance of strategic sectors, which have a dual effect on the national economy.

This is because the national economy still needs a cushion to drive growth due to the uncertain global economic conditions.

"We provide this housing support inclusively for all groups. In addition to the Value Added Tax Borne by the Government (PPN DTP), the government also provides various support for Low-Income Communities (MBR)," said the Head of the Fiscal Policy Agency, Febrio Kacaribu, on Friday (20/9/2024).

Febrio continued, specifically for MBR, the government has increased the allocation of subsidized KPR by 34 thousand units. This policy is to help low-income communities, and indirectly encourage national economic growth.

"The government is committed to increasing the allocation of the Housing Financing Liquidity Facility (FLPP) by 34 thousand housing units. So that the MBR who can take advantage of subsidized KPR this year will increase from 166 thousand families to 200 thousand families," explained Head Febrio.

The government has also provided DTP VAT incentives on the Taxable Base (DPP) section. The amount of the incentive is up to IDR 2 billion with a maximum house selling price of IDR 5 billion.

This incentive is given at 100 percent, until June 2024. The incentive is extended by 50 percent until December 2024.

Through PMK 61 of 2024, the government also provides an additional 100 percent VAT DTP facility. The incentive will be effective from September 1, 2024 to December 31, 2024.

"The fiscal support has been able to dampen the contraction in property sales at the beginning of the pandemic recovery. Property sales began to expand in Q2 and Q3 2022, by 15.2 percent and 13.6 percent, respectively," explained Head Febrio.

Property sales contracted again in Q3 2023. Thus, the government has again issued a fiscal incentive policy that will be effective from November 2023 to June 2024.

The policy has had a positive impact on the expansion of home sales growth from Q3-2023 to Q4-2024. Home sales grew by 3.4 percent, 31.2 percent, and 7.3 percent annually, respectively.

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