1. 20% luxury purchase levy applied to homes worth IDR30bn, was IDR20bn for houses and IDR10bn for condos previously.
2. Income tax on luxury sales for homes worth IDR30bn or more reduced to 1%, was 5% previously.

Our thoughts: While the luxury sector accounts for 10% of the residential market in In

donesia, the government is hopeful that the relaxation on taxes for both buyers and sellers would stimulate the property sector which will have multiplier effects on the construction, cement and consumer sectors. Going forward, expect a short-term boost for the luxury sector which has been sluggish over the past 5 years, mainly due to said tax policies.