August 20, 2025 | 10:50 am
TEMPO.CO, Jakarta - Deputy Minister of Home Affairs, Bima Arya Sugiarto, said his ministry has issued a circular appealing to all local governments to reevaluate their policies for increased Land and Building Tax for Rural and Urban Areas (PBB-P2) rates. According to Bima, 104 regions have implemented tax hikes, with 20 of them raising the PBB-P2 rates by over 100 percent.
"The minister (Minister of Home Affairs, Tito Karnavian) has issued a circular appealing (the local governments) to review their policies," Bima said at the Ministry of Home Affairs office in Jakarta, Tuesday, August 19, 2025.
The ministry has reminded the local governments to adopt pro-people policies, Bisa said. "We are confident that there will be a comprehensive evaluation process so that the local governments truly avoid implementing burdensome policies for the people and also reevaluate their fiscal revenue potentials," he said.
It is known that the circular was issued as a result of a protest in Pati Regency, Central Java, where thousands were rejecting a 250 percent hike in PBB-P2 issued by the Regent of Pati, Sudewo.
Bima added that the Minister of Home Affairs has also issued a warning letter to the Regent of Pati regarding his policy.
"The minister has already given a warning, and that led to, among other things, a change in the policy there," Bisa said, stressing that the tax hike policy in Pati has been revised.
The public protest in Pati took place on August 13, 2025, with people demanding Sudewo's resignation. There are also circulating posts on social media about plans for a subsequent protest on August 25.
Editor’s Choice: Prabowo Summons Home Affairs Minister Amid Regional Tax Hike Fiasco
Click here to get the latest news updates from Tempo on Google News
Prabowo Summons Home Affairs Minister Amid Regional Tax Hike Fiasco
18 jam lalu
Prabowo asked the minister to prepare several materials on the economic situation in several regions.
Pati Regent Protest: Minister Urges August 25th Protest to Be Non-Anarchic
1 hari lalu
Tito Karnavian warns the community in Pati, Central Java, to avoid behaving violently if they plan to hold another demonstration. He emphasizes that expressing opinions is not prohibited.
Pati Residents Planning to Hold Another Protest for Regent Sudewo's Impeachment
1 hari lalu
Residents of Pati will protest to urge the Regional House of Representatives (DPRD) to immediately process the impeachment of Regent Sudewo. They will also demonstrate at the Corruption Eradication Commission (KPK).
Indonesian Top Court's Dismissal of VAT Hike Lawsuit Feared to Uphold Tax Injustice
3 hari lalu
The Constitutional Court has rejected the petition for a constitutional review of Law Number 7 of 2021 concerning HPP Law that regulates VAT hike.
Which Progressive Tax Types Could Boost Indonesia's Revenue?
4 hari lalu
The Celios study discusses the potential impact of implementing progressive taxes on state revenue. The study lists various types of progressive taxes that could potentially increase state revenue.
Cirebon Govt Quashes Claims of 1,000% Property Tax Hike
5 hari lalu
The city government of Cirebon has imposed a property tax hike since last year, but denied the rate reaches 1,000 percent.
Prabowo's Response to the Protest Against Pati Regent Sudewo
6 hari lalu
Indonesian President Prabowo Subianto regretted the arrogant attitude of Pati Regent Sudewo in responding to public protests.
Presidential Palace Denies Casualties in Pati Protest
6 hari lalu
The Presidential Palace denies any casualties in the protest demanding the removal of Regent Sudewo in Pati, Central Java, on August 13, 2025.
Pati Protest: Police Fire Tear Gas at Mosque and Ambulance
6 hari lalu
Police fire tear gas at protesters demanding the resignation of Regent Sudewo in Pati, causing unrest and hospitalizing dozens.
Here Are the Victims in the Protest Demanding Pati Regent to Step Down
6 hari lalu
The details of victims treated as a result of the protest demanding the resignation of Pati Regent are five protesters and two police officers.
