Jokowi Signs BPHTB's Intensive Acquisition At IKN

President Joko Widodo (Jokowi) (Doc: State Secretariat)

JAKARTA - President Joko Widodo (Jokowi) signed Government Regulation Number 29 of 2024, one of which regulates the issue of providing incentives in the form of exemption from the duty to obtain land and building rights (BPHTB) in the capital city of Nusantara (IKN), East Kalimantan.

Quoted from a copy of government regulations (PP) on the Legal Documentation and Information Network (JDIH) page of the Ministry of State Secretariat, it is stated that PP Number 29 of 2024 concerning Amendments to PP Number 12 of 2023 concerning the Provision of Business Licensing, Ease of Business and Investment Facilities for business actors in the capital city of the archipelago, was officially promulgated on August 12, 2024.

According to the PP, the government provides incentives to developers and consumers of balanced housing in IKN in the form of BPHTB exemptions and land and building tax breaks (PBB).

In Article 25 paragraph 1 of PP Number 29 of 2024 it is stated that the acceleration of the construction and provision of housing and residential areas for communities in IKN, business actors in the housing sector and residential areas that have not been able to fulfill balanced residential obligations in other areas, can be carried out in the IKN area by taking into account the detailed plan and spatial planning of IKN.

Then, in Article 25 paragraph 7 states that business actors are given incentives in the form of BPHTB exemption and UN relief for a certain period of time.

Not only BPHTB and UN relief, the article continued, developers of balanced housing in IKN also receive other incentives, namely housing development program assistance, tax relief for simple houses in accordance with the provisions of laws and regulations, infrastructure assistance, facilities, and general utilities.

Then, incentives also include providing facilities for land acquisition for housing development and development, support for accessibility to balanced residential housing locations in the Nusantara Capital area, as well as awarding housing in balanced housing.

In the PP in addition to developers, balanced occupancy consumers also receive BPHTB exemption incentives and UN relief.

"The release of BPHTB as referred to in paragraph (7) letter f and relief of Land and Building Taxes with a certain period of time as referred to in paragraph (7) letter g applies also to consumers," said Article 25 paragraph 8 of PP Number 29 of 2024.

The release of BPHTB and UN relief with a certain period of time was proposed by the Head of the IKN Authority to be determined by the Regent of North Penajam Paser or the Regent of Kutai Kartanegara in accordance with his territory until the stipulation of the Special Regional Government of the Capital of the Archipelago.

The amendment to Government Regulation Number 12 of 2023 is motivated by the preparation, development, and relocation of the nation's capital as well as the implementation of the Special Regional Government of the Capital of the Archipelago must be carried out optimally and in accordance with the plans that have been set.

One of the main ingredients for the subject matter of change regulated in this PP includes providing incentives for business actors who carry out balanced housing obligations in the capital city of Nusantara.

The balanced housing policy requires that legal entities that carry out housing development (housing developers) to develop housing or residential areas with a balanced composition between luxury, medium and simple homes with a pattern of construction of 1 luxury house must be balanced with the construction of 2 medium houses and the construction of 3 simple houses or 1:2:3.