TEMPO.CO, Jakarta - Jakarta Governor Pramono Anung has signed the regulation on the exemption of the Rural and Urban Land and Building Tax or PBB-P2 for houses with a Tax Object Sales Value (NJOP) below Rp2 billion and apartments below Rp650 million. This policy is stipulated in Governor's Decision Number 281 of 2025, which he signed on March 25, 2025.

"So, if a house with a NJOP value below Rp2 billion, the PBB will be exempt. The new thing is if there's an apartment with a NJOP below Rp650 million, we will also exempt the PBB," said Pramono when met in Tambora, West Jakarta, on Wednesday, March 26, 2025.

Pramono believes that this policy will be targeted at less affluent residents. According to him, the majority of flats in Jakarta have an NJOP below Rp650 million.

He emphasizes that this regulation does not apply to residents who own more than one building. Pramono mentioned that a 50 percent tax will be imposed on the second residence, while for the third residence and onwards, there will be no tax exemption. "For the third residence and onwards, they have to pay, they are already able to afford it," he said.

The exemption of PBB-P2 for buildings with a certain sales value has previously been done during the era of Governor Basuki Tjahaja Purnama, also known as Ahok. Ahok exempted PBB for houses with an NJOP below Rp1 billion. When Anies Baswedan became governor (2018-2023), the tax-exempt NJOP was increased to Rp2 billion.

Acting Jakarta Governor Heru Budi Hartono then changed this exemption only for the first tax object. This means that if someone has a house or land with an NJOP value of less than Rp2 billion more than one, only one will be exempt.

This decision was made because if someone has more than one house or land, it means the owner is affluent. According to Heru Budi Hartono, Governor's Regulation Number 16 of 2024 regarding Rural and Urban Land and Building Tax (PBB-P2) does not affect the lower class of society.

"Because if it's below Rp2 billion, it's exempt, retirees are exempt," said Heru in Jakarta on Wednesday, June 19, 2024, as quoted from Antara.

Heru stated that the governor's regulation only affects people who already have a second or third house and so on, so it can be confirmed that residents who have one house with a Tax Object Sales Value (NJOP) of Rp2 billion are still safe.

"It doesn't affect the lower class of society. Everyone is affected after having a second, third, and so on house," he said.

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