President Jokowi Issues Regulation on Land, Building Acquisition Taxes

President Joko ‘Jokowi’ Widodo on 7 June 2016 signed a Presidential Instruction Number 5 of 2016 on the Land and Building Acquisition Taxes (BPHTB) and Building Permit (IMB) for Low-Income Housing (MBR) to quickly meet the house needs for low-income housing according to National Program of Developing Million House.

The Presidential Instruction serves the purpose of implementing Article 21 paragraph (6) and Article 54 of Law Number 1 of 2011 on Housing and Habitation.

The President instructed the Governor of Jakarta, and regent/mayor to take measures required to provide assistance and ease of building and buying house for low-income housing as accordance with their tasks, functions, and authorities.

The assistance takes form of granting Land and Building Acquisition Taxes (BPHTB) and retribution of Building Permit (IMB) based on fiscal capacity in each region and according to the prevailing laws and regulations.

The President also instructed those officials to stipulate procedures and technical guidelines to grant BPHTB and IMB retribution for low-income housing as accordance with the prevailing laws and regulations.

“The Governor of Jakarta shall regularly report to the President through Minister of Home Affairs,” third dictum of the Presidential Instruction says.

Meanwhile, regent/mayor shall regularly report to the Governor as the representative of the Central Government in region, and the Governor will report to the President through Minister of Home Affairs.

“Implement this Presidential Instruction with full responsibility,” fifth dictum of the Presidential Instruction Number 5 of 2016 which was stipulated in 22 June 2016 says. (Pusdatin/ES) (RAS/EP/YM/Naster)