A Rp 700 Million House with Free VAT: A Rare Opportunity in Bekasi 2026

When shopping for a house, most people focus on one number: the price on the brochure. But few immediately ask, "Does that include tax?" In Indonesia, the VAT (Value Added Tax) on property is 11%. That's not a number you can ignore.

If the house is Rp 700 million and VAT isn't included, you need to prepare an extra Rp 77 million just for tax. That's only the VAT, not yet counting BPHTB (property transfer tax), notary fees, and other costs.

At Kingspoint Residence, the Rp 700 million price for the Emerald 70 house already includes VAT. That means no "surprise costs" at the end of the buying process.

What Is "Government-Borne VAT" and Why Does It Matter?

PPN DTP stands for "PPN Ditanggung Pemerintah," essentially VAT covered by the government. It's an incentive program from the Indonesian government to stimulate the property sector, especially landed houses and first-time home purchases. The program has been running for several years and has been extended multiple times, including into 2026.

Here's how it works: the government "absorbs" the VAT that would normally be paid by the buyer, allowing the developer to sell the house at a price that already includes VAT without raising the selling price. Buyers save on tax, and the government benefits because the property sector stays active.

General requirements for the VAT incentive program:

• Applies to new landed houses (not secondhand)
• Selling price must be within the government-set limit (usually up to Rp 2-5 billion, depending on the period)
• Buyer must be an Indonesian citizen and the house must be used as a primary residence
• The unit must be handed over during the program period

How Much Do You Actually Save?

Let's do the math with real numbers:

• House price: Rp 700,000,000
• VAT at 11%: Rp 77,000,000
• Price without VAT incentive: Rp 777,000,000
• Price at Kingspoint (VAT included): Rp 700,000,000
• Savings: ~Rp 77,000,000

Rp 77 million is not pocket change. For perspective, that's almost equal to a 10% down payment on the house itself. So combined, you could say the free VAT practically eliminates one major expense from the total purchase cost.

Why Are So Many Buyers Caught Off Guard by VAT?

Because a lot of property brochures show the price "before tax." The number looks attractive in ads, but when signing day comes, a VAT charge suddenly appears that the buyer has to cover.

This is a frequent problem for first-time home buyers who don't have experience with the process. They've budgeted everything down to the last rupiah, then suddenly there's an extra tens of millions they didn't plan for.

That's why, every time you're surveying a house, the first question should always be: "Does this price include VAT or not?"

How Free VAT Affects Your Monthly Payments

The VAT savings aren't just about the total amount you pay. They also impact your monthly mortgage payments.

Quick simulation:

• Mortgage of Rp 630 million (Rp 700M minus 10% down payment) with 25-year tenure at 7.5% = payments of ~Rp 4.6-5.2 million/month
• Mortgage of Rp 700 million (Rp 777M minus 10% down payment = Rp 700M principal) with 25-year tenure at 7.5% = payments of ~Rp 5.1-5.7 million/month

The difference is Rp 400-500 thousand per month. Over 25 years, that adds up to Rp 120-150 million. So the upfront VAT savings have a long-term impact on your payment burden.

Will This Program Last Forever?

No. And this is the key point.

The government-borne VAT program is a stimulus measure, meaning the government can end it at any time, depending on economic conditions and the national budget. Extensions are typically announced per semester or per year. There's no guarantee this program will still exist in 2027.

So if you're already planning to buy a house within the next 1-2 years, taking advantage of the VAT program while it's still active is a smart move. That doesn't mean rushing without research, but don't wait until the incentive disappears either.

Other Costs to Prepare For

Even though VAT is covered, there are other costs in the home buying process you still need to budget for:

1. BPHTB (Property Transfer Tax): typically 5% of the assessed value minus a tax-free threshold
2. Notary/PPAT fees: title transfer and sale deed processing, roughly Rp 5-15 million
3. Mortgage fees: bank provision, insurance, administration, usually 3-5% of the mortgage value
4. Moving costs and minor renovations: the one people often forget to factor in

Total costs beyond the house price are usually around 8-12% of the property value. With VAT already included, you've at least eliminated the largest chunk of those extra costs.

Why Can Kingspoint Offer This?

Kingspoint Residence qualifies for the government VAT program because the units sold are new landed houses within the price range covered by the government's incentive. The developer (Mandiri Development) handles all the tax administration, so buyers simply receive a final, clean price.

What you get for Rp 700 million (VAT included):

• 2-story house, land area 47.25 m², building area 70 m²
• Bored pile foundation, reinforced concrete structure
• Swimming pool, club house, 24-hour security, CCTV
• Location on Jl. Raya Perjuangan, North Bekasi, 10 minutes to Bekasi Station, 10 minutes to the Bekasi Barat toll gate

The Bottom Line

Free VAT isn't a marketing gimmick. It's an official government program that delivers real savings for buyers. The Rp 77 million you save is real, measurable, and directly impacts both your total cost and monthly payments.

Just remember: this program won't last forever. If you're serious about buying a house, take advantage of it while it's still available. The math is clear. It's just a matter of deciding when the time is right for you.