Tax Cuts, Not Loan Rules, Will Lift Indonesia Home Sales: Fitch

Indonesia’s VAT rebates on new home sales will offer a “significant” 5%-10% discount on prices and spur demand for properties costing 5b rupiah and below, which accounts for the bulk of market, Fitch Ratings says.

• PT Ciputra Development, PT Lippo Karawaci and PT Pakuwon Jati will benefit the most from the tax cuts since they have more inventory of completed properties, Fitch says in a report
• PT Bumi Serpong Damai, PT Alam Sutera Realty, PT Agung Podomoro Land and PT Kawasan Industri Jababeka seen benefiting to a lesser extent
• NOTE: Bank Indonesia Already Sees Recovery in Property ...