Pramono Gives Many Tax Incentives, DKI Provincial Government Is Not Worried About The Deficit APBD

JAKARTA - DKI Jakarta Governor Pramono Anung issued an incentive policy for a number of taxes in recent months. The incentives range from reduction or discount, to bleaching tax fines.

Head of the DKI Jakarta Regional Revenue Agency (Bapenda) Lusiana Herawati admitted that he was not worried that the various tax incentives given to Jakarta residents would result in revenue in the APBD being a deficit.

"Regarding tax relaxation, will this have an impact on (achieving) targets (regional income)? Of course not," Lusiana told reporters, Thursday, August 28.

Moreover, Lusiana revealed that the realization of local revenue in the tax sector in the second quarter or as of July 31, 2025 has reached 57.46 percent or IDR 27.57 trillion from the target of IDR 48 trillion by the end of the fiscal year.

Then, the realization of regional retribution income per second quarter of 2025 reached 48.85 percent or Rp702 billion from the target of Rp1.44 trillion.

"If we look at it until July 31, both in terms of regional tax revenue and regional levies in Jakarta, it has grown positively," said Lusiana.

"With the discussion on relaxation or incentives, we are in determining how much it has been based on studies and has no impact on decreasing existing targets," he continued.

A number of incentives issued by the DKI Provincial Government include the abolition of administrative witnesses for motor vehicle taxes (PKB), relief of duties for land and building rights (BPHTB), especially for the purchase of the first house, discounted hotel and restaurant taxes, to continuing exemption from land taxes and rural and urban buildings (PBB-P2) houses with NJOP below Rp1 billion for the first house.

"So even though it collects taxes, the DKI government is also still thinking about how to encourage economic growth, so that policies arise related to providing incentives to encourage the community," he added.