Anies Frees Home Land Tax With NJOP Below IDR 2 Billion, DKI DPRD: Not Worth It!

DKI Jakarta Governor Anies Baswedan. (Between)

JAKARTA - DKI Jakarta Governor Anies Baswedan exempts rural and urban land and building tax (PBB-P2) with a tax object selling value (NJOP) below IDR 2 billion.

The NJOP value of this Property Tax (PBB) exemption was increased by Anies after previously the tax exemption only applied to NJOP under IDR 1 billion by the former Governor of DKI Basuki Tjahaja Purnama or Ahok.

Responding to this, DKI Jakarta DPRD member Hasbiallah Ilyas called Anies's policy of liberating the PBB with an NJOP of under IDR 2 billion.

Because, he said, homeowners who are taxpayers with a nominal NJOP are among the middle class. They, said Hasbi, does not need incentives.

"We agree to relieve the residents, but it's for the lower class. If it's for the middle class, it can't be done", said Hasbi when contacted, Tuesday, June 14.

Hasbi emphasized that PBB is one of the major sources of APBD revenue. This year, the DKI Provincial Government targets PBB revenues of up to IDR 10.25 trillion.

Therefore, with the release of PBB on NJOP with a value below IDR 2 billion, Hasbi is worried that regional revenues will decrease.

"If we look at the current income, it's actually not worthy to be issued (the NJOP PBB exemption) is issued at IDR 2 billion", said Hasbi.

"We are worried that DKI's income will decrease drastically. Because our economy is just growing, right. At the very least, the provincial government must find another source of income for the local government", he continued.

For information, the Governor of DKI Jakarta Anies Baswedan provides incentives for paying rural and urban land and building taxes (PBB-P2). This is stated in the Governor's Regulation Number 23 of 2022.

One of the incentives is in the form of exemption from SPPT PBB 100 percent on residential objects with NJOP below IDR 2 billion.

Meanwhile, PBB with an NJOP of more than IDR 2 billion is given a deduction factor based on the minimum area of land and buildings needed for simple healthy houses, which is 60 square meters for the earth and 36 square meters for buildings, and a 10 percent exemption.