State Secretary: Land and Building Tax (PBB-P2) Policy Regulated by Regional Government

Jakarta – Minister of State Secretary Prasetyo Hadi emphasized that the policy of increasing the Rural and Urban Land and Building Tax (PBB-P2) in Pati Regency by up to 250 percent is entirely within the authority of the regional government and is not related to central government policy. This affirmation reflects the central government’s commitment to respecting regional autonomy and ensuring that all regional policies are in the interests of the community.

“No, it’s not due to (a minimal budget),” said Prasetyo Hadi at the Presidential Palace Complex in Jakarta.

He added that each regional head has different policies according to the characteristics of their region.

“Those are indeed the policies of each regional government, and they do vary from one district to another,” he explained.

Prasetyo Hadi stated that his office has coordinated with Minister of Home Affairs Tito Karnavian to respond to the dynamics in Pati Regency. He reminded all public officials at the central and regional levels to be careful in making statements and formulating policies, especially those that directly impact the community.

“Especially when it comes to implementing policies that will impact the community,” he stressed.

The central government appreciates the steps taken by Pati Regent Sudewo, who has responded to public aspirations by reducing the PBB-P2 rate after the initial policy sparked public objections. This stance is seen as a demonstration of the regional head’s openness in accommodating public input.

Minister of Home Affairs Tito Karnavian added that his office is ready to provide assistance to all regional heads in formulating fiscal policies.

“Regional tax policies must be aligned with the economic capabilities of local communities, so that development continues without burdening residents,” he said.

He emphasized that the Ministry of Home Affairs continues to monitor to ensure similar policies in other regions do not trigger social unrest.

Regarding security, the Head of Public Relations of the Central Java Regional Police, Senior Commissioner Artanto, stated that the police are committed to maintaining regional stability while ensuring that residents’ aspirations can be conveyed in an orderly manner.

“We urge all elements of society to express their opinions through peaceful channels. Security is a shared responsibility,” Artanto said.