JAKARTA, Feb. 2 (Xinhua) -- Indonesian will impose a progressive tax on unused land to prevent it from being purchased for speculative purpose that can significantly raise its prices.
Indonesian Finance Minister Sri Mulyani said on Thursday that the government has been formulating regulations about the tariff.
"We are in the process of formulation. We will also sharpen the policy in order to be able to achieve the aspect of social and justice," Mulyani said.
The ministry of finance and the ministry of agrarian and spatial planning have been cooperating to synchronize taxation data and data about the land ownership, he added.
According to public work and housing ministry, demand for houses will reach to 30 million units by 2025 in Indonesia with annual need of about 1.2 million units.
In August, the government unveiled a fresh stimulus policy to help accelerate expansion of property sector, including reduction of the number of business licenses required for property development.
The period for processing the license was also shortened by 44 days.
The Southeast Asia's biggest economy is home to over 250 million people with emerging middle class and growing wealth.
Property is one of strategic industries in Indonesia as it helps generate many other sectors.
