Tax Brief: PMK Number 60 of 2025
Statistics Indonesia (Badan Pusat Statistik/BPS) reported that the Indonesian economy grew 5.12% year-on-year in the second quarter of 2025. On a quarter-on-quarter basis, growth reached 4.99% compared to the first quarter.
A closer look at the data reveals that the primary drivers of second-quarter growth were exports of goods and services, accounting for 10.67%, and household consumption by non-profit institutions serving households (NPISHs), which reached 7.82%. In contrast, household consumption growth remained flat at 4.97%. The chart below illustrates the components of economic growth in 2024 and 2025.
To further boost economic activity, the government is focusing on stimulating household consumption, which has shown signs of stagnation. One of the measures introduced is through the issuance of (Peraturan Menteri Keuangan/PMK) Number 60 of 2025, which grants additional government-borne value-added tax (VAT) incentives on the transfer of landed houses and residential units, financed under the 2025 State Budget.
According to the regulation’s recital, this policy is intended to sustain Indonesia’s economic growth by supporting household purchasing power in the housing sector in 2025.
The main provisions of PMK Number 60 of 2025 include:
- The government provides government-borne VAT on the transfer of landed houses and residential units that meet the requirements.
- VAT borne by the government applies to deliveries made between July 1, 2025, and December 31, 2025.
- Eligible transfers must be reported and include details such as the seller’s and buyer’s names, their taxpayer identification numbers, the handover date, house identification code, and handover report number.
- Handover minutes must be registered in the Ministry of Housing and Residential Areas' system and/or the Public Housing Savings Management Agency's system.
- To qualify, landed houses or residential units must be new, ready-to-occupy properties with a maximum selling price of IDR 5 billion.
- The VAT incentive covers the selling price up to IDR 2 billion. For example, if the selling price is IDR 4.5 billion, the VAT calculation is as follows:
| No. | VAT | Tax Base | Rate | Amount |
| 1 | Borne by the Government
| IDR 2,000,000,000 | 11% x 0 | IDR 0 |
| 2 | Not Borne by the Government | IDR 2,500,000,000 | 11% | IDR 275,000,000 |
| Total | IDR 4,500,000,000 | IDR 275,000,000 | ||
- Developers (taxable entrepreneurs) must issue tax invoices and submit reports on the realization of government-borne VAT.
- The government-borne VAT incentive may be revoked if:
- the property is not a landed house or residential unit;
- down payment or first installment was made before July 1, 2025;
- handover takes place before July 1 or after December 31, 2025;
- a buyer acquires more than one property;
- the property is transferred within one year of handover;
- the taxable entrepreneur fails to issue a tax invoice;
- the taxable entrepreneur fails to register the handover minutes; or
- the taxable entrepreneur fails to submit realization reports.
In short, PMK Number 60 of 2025 outlines additional VAT incentives for the delivery of landed houses and residential units, which the government bears in the 2025 fiscal year. If you have further questions, Ideatax is ready to assist.
References
Badan Pusat Statistik2025Pertumbuhan Ekonomi Indonesia Triwulan II-2025JakartaBadan Pusat Statistik