Need Money, So The DK Jakarta Provincial Government Changes The UN Rules For Homes With NJOP Below IDR 2 Billion

JAKARTA - Jakarta residents have complained about the Provincial Government's (Pemprov) decision policy regarding the new rules for Rural and Urban Land and Building Tax (PBB-P2). According to a public policy observer, the decision was taken because Jakarta needed a large income after it was no longer the capital city.

Many Jakarta residents have complained about changes in tax collection of houses under Rp. 2 billion. Whereas previously, houses with a tax object (NJOP) selling value below Rp. 2 billion were not subject to PBB-P2.

This new tax regulation is contained in Governor Regulation Number 16 of 2024. According to the Head of the DKI Jakarta Provincial Revenue Agency (Bapenda) Lusiana Herawati, this new regulation is an improvement to the formulation of providing regional tax incentives that have been given to the people of Jakarta in previous years which were deemed not on target.

"This year's policy, especially for housing with a value below Rp. 2 billion, is different from the previous year's tax-free one, for 2024 it is given for one UN-P2 object owned by taxpayers," Lusi said in a written statement.

With this latest regulation, someone who owns an NJOP-valued house or land of less than Rp. 2 billion more than one, only one is free, which has the largest NJOP.

Lusiana explained the reason why the DKI Provincial Government revoked the all-house PBB-P2 reduction policy below IDR 2 billion. Previously, the house tax exemption was implemented because the economic condition was slumped due to COVID-19. Now, the policy has been revoked because it is considered that economic conditions have recovered after the pandemic.

Public policy observer from Trisakti University Trubus Rahadiansyah said the latest implementation of the PBB-P2 tariff was not due to post-pandemic economic conditions, but because Jakarta's status had changed to no longer the capital.

"Now given the return fee because Jakarta has become the capital city again. This is related to income," said Trubus when contacted by VOI.

He added, with his new status, DKJ is intensively looking for sources of regional income. Previously, when he was still the nation's capital, the DKI Jakarta government was helped by the abundant budget disbursement from the center.

However, Trubus regrets that there is no disclosure of public information regarding this latest decision. Moreover, Heru Budi Hartono, who only has the status of Acting Governor of Jakarta, according to Trubus, should not have signed the decision.

"This policy is because it involves many middle to lower class people, there must be public participation, there is a kind of disclosure of public information," Trubus said.

"Jakarta is currently looking for money, but the method is not like that. Moreover, the Acting position will end soon, this will even leave the legislation worse," he added.

UN exemption in Jakarta with NJOP below Rp1 billion starts from the era of Joko Widodo when he served as Governor of DKI Jakarta. Jokowi issued Regulation of Governor Regulation Number 84 of 2013.

In the Jokowi era, certain groups such as veterans, former governors, deputy governors, former presidents and deputies as well as retired Indonesian National Police officers received up to 75 percent of them.

This rule continues during the period of Basuki Tjahaja Purnama or Ahok in 2016. Ahok released the United Nations for homes with NJOPs below IDR 1 billion through Governor Regulation No. 259 of 2015.

Then during the Anies Baswedan era, his policy was expanded by eliminating the PBB for houses whose NJOPs were below Rp. 2 billion. Pergub Number 23 of 2022 became the basis for the policy law.

Meanwhile, under Acting Governor Heru Budi, this inclusion only applies to one tax object for those who have more than one house.

The Jakarta government has lost a large enough income for this UN exemption. Quoting Tempo, until 2022 there will be at least 1.2 million houses whose NJOP is below IDR 2 billion. Thus, 85 percent of buildings owned by Jakarta residents were not affected by the PBB.

From the UN exemption at 1.2 million homes, regional cash revenue has the potential to lose IDR 2.7 trillion per year.

However, when he was still the Governor of DKI, Anies thought this was not a problem.

At that time, Anies was willing to lose Rp2.7 trillion in revenue from this UN exemption because he remained in the pockets of the people whose UN was released.

Because, according to Anies, the money that should have been spent by the public for this PBB payment could have been used to meet their daily needs.

"Rp2.7 trillion is usually accepted by the government, but with this policy the funds survive in the community. The hope is that this Rp2.7 trillion will be used to drive the economy. So, more can work, more can get better welfare," Anies explained on Wednesday, August 17, 2022.