Luxury tax applied to attract foreign investors.

ElmiMufidah

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Luxury tax of 20% will only be applied for houses and flats worth Rp30billion (US$1.4 million). President Joko Widodo have announced this information in June. Before, the luxury tax applied for properties worth over Rp20billion.

President Jokowi goals about this new luxury tax is to boost economic growth, by making Indonesia more attracting and more welcoming foreign investors. Executive Chairman at Juwai.com, Georg Chmiel, really agree with this renewed luxury tax.

Foreigners are now allowed to rent properties for an initial period of 30 years, with a subsequent extension of 20 years, followed by another 30 years in Jakarta.



 

Jamu

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Hmmm, it seems more like a tax break that will mainly benefit rich Indonesians.
 

waarmstrong

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From around $900 thousand to a $1.4 million threshold trigger to a luxury tax on residential property. Is there a reason I should care about this change?
 

Jamu

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From around $900 thousand to a $1.4 million threshold trigger to a luxury tax on residential property. Is there a reason I should care about this change?
Actually the threshold has changed from approximately US$1.4 million (Rp 20M) to US$2.1 million (Rp 30M). The exchange rate math in the OP was wrong... Still, at these levels most buyers are Indonesians, who can enjoy hak milik title. It's a hell of a lot of money to pay for a leasehold so I can't really see any attraction for significant numbers of foreign buyers.
 

waarmstrong

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Yes, I see 30M divided 14,000 or so is $2,135,000. My point again -- those who give a shit are a small group, even among Indonesians, I suspect.
 

dafluff

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I suspect the number of foreigners looking to drop Rp 30M on an Indonesian private property is approximately zero...
 

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