Recently, the public has been discussing the increase in Land and Building Tax (PBB) in a number of regions, which is considered too high and burdensome for the community. The controversy has sparked criticism because it is deemed to be inconsistent with the principle of fiscal justice, especially for low-income groups.
The central government has reiterated the importance of implementing fair regional tax and levy policies that favor the community. Through Circular Letter (SE) of the Minister of Home Affairs Number 900.1.13.1/4528/SJ dated August 14, 2025, Minister of Home Affairs Tito Karnavian asked governors, regents, and mayors to be more prudent in setting regional tax and levy rates.
The SE contains several key directives:
- Fair Tax Policy
Local governments are requested not to set rates that could burden the poor. Adjustments must be based on objective socio-economic analysis. - PBB-P2 and NJOP
The determination of rates for Rural and Urban Land and Building Tax (PBB-P2) and increases in Tax Object Sales Value (NJOP) must be considered carefully. Regional heads are even requested to postpone or cancel rate increases if they are deemed to be burdensome for the community. - Coordination with the Central Government
Before issuing regional regulations related to taxes and levies, local governments are required to coordinate with the Directorate General of Regional Financial Development of the Ministry of Home Affairs and related ministries. - Supervision and Evaluation
Governors, as representatives of the central government in the regions, are required to evaluate district/city tax policies. In addition, the Regional Inspectorate must also be involved to ensure that supervision is carried out in accordance with legal provisions.
Mendagri Tito Karnavian menegaskan pajak dan retribusi merupakan sumber penting pendapatan daerah, namun penerapannya harus selaras dengan kondisi masyarakat agar tidak membebani golongan kecil. Melalui SE ini, pemerintah daerah didorong lebih hati-hati menetapkan tarif, menjaga keseimbangan pembangunan dan keadilan sosial. Kebijakan tersebut juga menegaskan kontrol fiskal pusat tetap penting di tengah otonomi daerah, guna mendukung pemulihan ekonomi dan pengendalian inflasi. Transparansi dan akuntabilitas pengelolaan pajak daerah menjadi kunci untuk meningkatkan kepercayaan public