BPHTB And PBG Program 3 Million Houses Removed, People Can Save Up To IDR 10.5 Million

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian said the government's decision to abolish the levy of Building Approval (PBG) and Building Rights Obtainment Fees (BPHTB) for Low-Income Communities (MBR) would have a positive impact.

In addition, this step is also considered to be able to support the achievement of the 3 million house program per year launched by President Prabowo Subianto.

The reason, said Tito, is that based on the calculations that have been carried out by his party, the community can save up to Rp. 10.5 million.

"From this policy, the potential for BPHTB to be abolished is value for type 36 houses of Rp. 6,250,000. Then for PBG, Rp. 4,320,0000 is released. So, for type 36 houses, it can actually save approximately Rp. 10,570,000. Now, this is what benefits the community," Tito said at a press conference at the Ministry of Home Affairs Building (Kemendagri), Jakarta, Monday, November 25.

Tito explained that the criteria for MBR houses that can be free of PBG and BPHTB have been regulated in the Decree of the Minister of Public Works and Public Housing Number 22/Kpts/M/2023 concerning the Income Rate of Low-Income Communities and Area Limitation of the Public House and Swadaya General House or Home Renovation.

"From this regulation, the criteria are for landed houses and flats with a maximum area of 36 square meters and for self-help houses with a maximum area of 48 square meters," he said.

He also explained the criteria for MBR in terms of income.

The amount of MBR income for the regions of Java, Sumatra, Kalimantan, Sulawesi, Bangka Belitung Islands, Riau Islands, Maluku, North Maluku, Bali, East Nusa Tenggara and West Nusa Tenggara, for the category of not marrying is a maximum of IDR 7,000,000 per month, the Kawin category is IDR 8,000,000 per month and the category of one Tapera Party is IDR 8,000,000 per month.

Then, for MBR in the areas of Papua, West Papua, Central Papua, South Papua, Mountains Papua and Southwest Papua, for the unregistered category of Rp7,500,000 per month, the Kawin category is a maximum of Rp10,000,000 and the category of one Tapera participant is Rp10,000,000.

"Those who have salaries in the area and then the area of the floor for them is made (a public house) of 36 square meters, a flat of a maximum of 36 square meters and self-help is built 48 square meters, so they are exempted to be withdrawn for levies on land and building rights (BPHTB). Second, in this SKB will also be exempted for PBG levy," said Tito.

According to Tito, the program will make the price of the house a home.

"We imagine 5-10 percent of the cost component. If the house price is 30 million, it means that there are 3 million which are reduced in price," he explained.

However, Tito emphasized that this policy is right on target because it will affect Regional Original Income (PAD). Thus, local governments (Pemda) are asked not to provide this incentive to developers, middle or high income people.

"It must be studied properly. Do not let (there) be collusion with developers, it is home to low-income people, not middle-sized or high-income. Then it seems as if they have low-income so that their duties are zero, as a result, PAD will decrease," he said.

To note, the abolition of BPHTB and PBG is stated in the Joint Decree (SKB) signed by the Minister of Home Affairs (Mendagri) Tito Karnavian, Minister of Housing and Settlement Areas (PKP) Maruarar Sirait and Minister of Public Works (PU) Dody Hanggodo at the Ministry of Home Affairs office, Jakarta, on Monday, November 25.

Later, the SKB will be forwarded through the Regional Head Regulation (Perkada).