JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian denied the increase in rural and urban land and building taxes (PBB) (PBB-P2) in a number of regions due to the budget efficiency policy carried out by President Prabowo Subianto.
According to him, the tax tariff adjustment is a mandate of the law under the authority of the regional government.
"So, I convey that the increase in the PBB-P2 problem is actually the mandate of the HKPD Law Number 1 of 2022 concerning Central and Regional Financial Relations, where the authority is given to the regions to obtain taxes and levies in the regions," Tito said at a press conference at the central office of the Directorate General of Taxes. Ministry of Finance, Jakarta, Friday, August 15.
Dadan explained that the technical provisions regarding the adjustment of the Tax Object Selling Value (NJOP) and the UN tariff are regulated in Government Regulation (PP) Number 35 of 2023.
The regional government (Pemda) together with the DPRD have set regional tax and levy regulations, while the tariff is determined through regional head regulations.
The NJOP adjustment can be made every three years following market prices, but must take into account the socio-economic conditions of the community and involve public participation.
According to Tito, of the 20 regions that raised the PBB-P2 with impacts above 100 percent, two of them have canceled the policy, namely Pati and Jepara in Central Java Province.
A total of three regions have only set an increase in 2025, while the rest will be carried out in 2022-2024.
"This means that it has nothing to do with it. 15 regions have nothing to do with the efficiency that occurs in 2024," he said.
He added that he had issued a circular and held a virtual meeting with regional heads to consider socio-economic factors before raising the PBB-P2.
Tito also asked that every plan to adjust the NJOP or UN tariff be submitted to the Ministry of Home Affairs for a review, in order to avoid policies that burden the community.
In recent weeks, a number of regions have faced protests regarding the increase in the UN. In Pati, Central Java, thousands of residents rejected the policy of the Regent of Sudewo who wanted to increase the tariff by 250 percent before it was canceled.
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There were also protests from residents regarding the increase in the UN in Cirebon City which had been implemented in 2024 when it was led by Agus Mulyadi as Acting Mayor of Cirebon.
The policy was reportedly issued by Agus Mulyadi to adjust the value of the PBB there which will become a reference for the new Tax Object Selling Value or NJOP, because it has not been revised since 2018.
Meanwhile in Jombang, East Java, thousands of residents objected after the UN rate rose to 1,202 percent since 2024. Some residents carried out symbolic actions, such as paying taxes with coins.
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