Bandung City Government Offers Up to 100% Property Tax Discount and Penalty Waiver
The Bandung City Government (Pemkot) is again providing local tax incentives through the Rural and Urban Land and Building Tax (PBB-P2) Discount Programme. The programme, running from 1 July to 31 December 2026, offers a reduction on outstanding principal of up to 100% along with a full waiver of penalties.
The Head of Data Collection and Assessment (PAD) II at the Bandung Regional Revenue Agency (Bapenda), Andri Nurdin, stated that this policy was initiated by the Mayor of Bandung as a tangible form of support to ease the community’s economic burden while improving taxpayer compliance.
"This programme is a local tax incentive provided by the Bandung City Government to improve taxpayer compliance while easing the burden on the community," Andri said on Wednesday (22/7).
Andri explained there are three discount categories in this incentive programme. The main requirement is that taxpayers must first settle their PBB for the 2026 Tax Year. The payment system has been automated. After a taxpayer pays the 2026 PBB, the outstanding bill amount will automatically change according to the discount category without needing to submit an application to the Bapenda office.
This programme is the second incentive in 2026. Previously, the Bandung City Government had provided a 10 percent discount for current year PBB payments until 30 June 2026. This measure proved effective in pursuing local revenue targets.
In 2026, Bandung City’s PBB revenue target is set at Rp700 billion, an increase of Rp100 billion from the previous year. As of 30 June 2026, revenue realisation had reached Rp294.6 billion.
Andri added that the issue of PBB receivables is a legacy from the transfer of management from the central government to the regions in 2013. "We invite the public to take advantage of this opportunity until 31 December 2026. This six-month programme is not held every year," he added.
Through various conveniences and system automation at partner banks or payment channels, the Bandung City Government hopes that citizens’ awareness in fulfilling their tax obligations will continue to increase for the betterment of city development.