What are the Land Tax Rates in Jakarta?

Jakarta residents should prepare to pay more for their Land and Building Tax (Pajak Bumi dan Bangunan or PBB). Jakarta Governor Anies Rasyid Baswedan has decided to increase the Land and Building Tax Object Value (Nilai Jual Objek Pajak or NJOP) in 2018. This decision is outlined in Jakarta Governor Regulation (Pergub) No. 24/2018, signed in March 2018 and retroactively effective from January 2018. The average NJOP increase is approximately 19%, but not all areas experienced this increase.

Currently, the land tax rate in Jakarta is 0.01% for NJOP values below Rp 200 million, 0.1% for NJOP values between Rp 200 million and Rp 2 billion, 0.2% for NJOP values between Rp 2 billion and Rp 9.99 billion, and 0.3% for NJOP values of Rp 10 billion and above. However, based on Pergub 259/2015, PBB with an NJOP below Rp 1 billion is exempt from tax.

As an illustration, the land tax object in Gandaria Selatan sub-district (in an alleyway) reaches Rp 5.76 million/meter, while the building tax is Rp 2.63 million. With a land area of 1,070 square meters and a building area of 400 square meters, the total NJOP reaches Rp 7.22 billion (Rp 6.2 billion for land plus Rp 1.1 billion for the building). The applicable PBB rate is 0.2% of the NJOP. Therefore, the tax payable by the taxpayer is approximately Rp 14.4 million. If the NJOP of land in Gandaria Selatan increases, the tax payable next year will also increase.