Regarding The Elimination Of BPHTB And PBG Retribution, Minister Of Home Affairs Tito: Significant Impacts To PAD

Minister of Home Affairs Tito Karnavian (center) (Photo: Theresia Agatha/VOI)

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian said the decision to abolish the levy of Building Approval (PBG) and Building Rights Obtainment Fees (BPHTB) could have an impact on reducing Regional Original Revenue (PAD).

It is known, the policy will apply to all regions and apply to Low-Income Communities (MBR). Later, the regulation will be in the form of a Regional Head Regulation.

"We are aware that this elimination for low-income people will have a significant impact on PAD, because the retribution is one of the PAD sources," Tito said at a press conference at the Ministry of Home Affairs (Kemendagri) Building, Jakarta, Monday, November 25.

"We don't know what the impact is, because how many low-income people in each region are different," he continued.

On the other hand, Tito explained that this program must be carried out in accordance with President Prabowo Subianto's vision and mission.

His party will review how much impact the policy will have on PAD.

"Later, we will see again what the solution will be. But, actually, if we want all pro people to be difficult for the community, yes, this must be done, including by all regional heads," said Tito.

Although it will reduce regional income, Tito said, with this policy the purchase of houses for MBR will be cheaper.

In his calculations, the public can save up to Rp. 10.5 million with the policy of eliminating PBG and BPHTB.

"From this policy, the potential for BPHTB to be abolished is the 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," he explained.

Therefore, Tito hopes that this policy is right on target because it will affect PAD.

So that local governments 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.