Property - Wider scope of VAT incentive

Property - Wider scope of VAT incentive The government will expand its value added tax (VAT) incentive program to include property purchases up to IDR 5 bn, up from IDR 2 bn previously. However, the incentive amount will still be calculated based on a price of IDR 2 bn. For example, on buying IDR 4 bn house, customer will receive a VAT exemption on the first IDR 2 bn and pay VAT on the remaining IDR 2 bn. (Source: Investor.id) Comment: We are positive on the news as this will accelerate more potential marketing sales for property companies in 4Q23 and 2024. SMRA could be the one of the biggest beneficiary by having IDR1.9 tn of inventory for the eligible product (which consist IDR1.1 tn of house), BSDE has ~IDR2 tn of inventory (80% apartment, the rest are mostly land plot), while we waiting for further detail from CTRA.