Indonesian Political, Business & Finance News

Accelerate the People’s Housing Programme, Home Affairs Minister Fully Supports 0 per cent BPHTB and PBG for MBR

| | Source: KOMPAS Translated from Indonesian | Social Policy
Accelerate the People’s Housing Programme, Home Affairs Minister Fully Supports 0 per cent BPHTB and PBG for MBR
Image: KOMPAS

The Indonesian Home Affairs Minister Muhammad Tito Karnavian fully supports the policy of 0 per cent BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) and the exemption of Persetujuan Bangunan Gedung (PBG) fees for low-income households (MBR). He believes the policy implementation can accelerate access to decent housing while supporting the People’s Housing Programme. “With 0 per cent BPHTB, the amount payable from the Tax Object Value (NJOP) is effectively zero; PBG will be zero as well,” Tito said in a written statement received by Kompas.com. He delivered the remarks during the Collaboration Event on the Housing Financing Programme and People’s Economic Empowerment at the Graha Bhakti Praja Conference Center, Governor’s Office of West Nusa Tenggara (NTB), on Tuesday (19 May 2026). Tito explained that the government is also expanding the coverage of the MBR category so more people can access the housing programme. “The ceiling has been raised again by the Minister of Public Works and Public Housing (PKP), so more people can be included in the low-income category,” Tito said. To support the implementation of the 0 per cent BPHTB and the PBG for MBR, Tito urged all regions to have Mal Pelayanan Publik (MPP). He said the MPP can facilitate licensing services through a one-stop system, including the issuance of PBG. “We already have 359 [MPP], and we are pushing other regions,” he added. Based on available data, Tito praised NTB as a region with the highest PBG issuances in the Nusa Tenggara and Maluku area. “So, the highest is indeed in NTB. There are about four or five regencies/cities issuing PBG. That number is around 60, but the impact is more than 3,400,” Tito said. He noted that this shows developers have used PBG. Tito gave an example: if there are 60 PBG and 60 houses, that means the owners are individuals. On the other hand, Tito highlighted the still-low PBG issuances in several areas, such as North Maluku.

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