Jakarta. The government is planning to exempt houses worth less than Rp 10 billion ($690,000) from luxury tax as part of its deregulation policy package to lure investors into the sector and help fix the nation's housing backlog, a minister said on Thursday.

Finance Minister Bambang Brodjonegoro said the ministry is proposing a revision of regulations concerning luxury tax on lavish houses. However, he declined to elaborate on the timeframe.

Luxury tax in Indonesia is set at 20 percent of the price tag.

"We will revise it as soon as possible," Bambang said.

Under the current scheme, the government imposes a luxury tax for houses worth more than Rp 2 billion, a regulation that developers have said is hampering development. They also say the rule is outdated as in many parts of the Greater Jakarta area houses worth Rp 2 billion and more are a very common sight.

Under the planned ministerial revision, houses worth more than Rp 10 trillion would still be subjected to the 20 percent luxury tax.