The Jakarta administration has set a 19.54 percent increase in the taxable value of property (NJOP) as regulated under Gubernatorial Decree No. 24/2018, dated March 29, 2018.
“The average increase in the NJOP for land and buildings in rural and urban areas (NJOP PBB-P2) for 2018 is 19.54 percent,” Jakarta Deputy Governor Sandiaga Uno said on Wednesday, as quoted by kontan.co.id.
Sandiaga said that the increase in Jakarta’s NJOP was affected by the city’s economic development, adding that the increased NJOP would also cut down on potential losses in Jakarta’s tax earnings from the property transfer fee (BPHTHB).
Jakarta Legislative Council (DPRD) member Santoso of Commission C, which oversees finance, said the NJOP was increased in January. However, the relevant regulations had come later, because the administration was still categorizing additional regions into commercial zones that would affect the taxable value of the property in their area.
Urbanist Yayat Supriatna said that the additional NJOP collected from commercial centers should be channeled back to the area for infrastructure development.
“For example, new earnings from this policy could be used to fix roads in the area [that contributed the NJOP],” he said.
Meanwhile, the public has reported an increase in property tax (PBB) following the NJOP hike.
Husein, a resident of Rawamangun, East Jakarta, said that he had to pay Rp 1.9 million (US$131) in property tax this year, a 58.3 percent increase from the Rp 1.2 million property tax he paid last year. (ami)