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.