Burdened by Bulog Tax, NTB Corn Farmers Appeal to Governor Iqbal
Representatives of corn farmers from Lombok and Sumbawa visited the West Nusa Tenggara (NTB) Governor’s Office on Wednesday (24/6/2026). They complained about an additional income tax levy of 1.5% on the Government Purchase Price (HPP) imposed by the NTB Public Corporation for Logistics Affairs (Perum Bulog).
Chairperson of the NTB Aspiration and People’s Voice Institute (LASER), Kamsiah, urged the Provincial Government to push for restitution of the deducted tax. According to her, the policy, which was implemented in 2025, has heavily burdened farmers.
“This additional tax amounts to billions of rupiah. It is very burdensome for the farmers,” Kamsiah said when met at the Governor’s Office on Wednesday (24/6/2026).
Kamsiah explained that the complaint had been voiced for the past two months. Based on data compiled from Bulog, the value of the additional tax deduction ranges from Rp 700 million to Rp 1 billion per deduction period.
“This policy only came into effect in 2025 and there have been three to four deduction periods. So we can say the total has reached more than Rp 4 billion,” Kamsiah clarified.
According to Kamsiah, the 1.5% deduction further squeezes farmers who are already burdened with other levies, such as Land and Building Tax (PBB), taxes on seed and pesticide purchases, as well as zakat obligations for Muslims.
“Farmers have so many expenses. If a farmer’s harvest fails, the government often turns a blind eye. But when they succeed, they become tax objects. As a result, farmers sometimes only break even, or even suffer losses,” Kamsiah lamented.
Kamsiah hopes that in the future there will be no similar tax burdens for crucial food commodities like corn.
“We have been going back and forth to Bulog, but to no avail. They say they are merely implementing the law. That is why we have come to complain to the governor,” Kamsiah stressed.
Governor Iqbal’s Response
Governor of NTB, Lalu Muhamad Iqbal, asserted that food commodities such as corn and rice should be exempt from Value Added Tax (PPN).
Iqbal was puzzled by the additional 1.5% tax collection that had been in effect for three months in 2025. However, he confirmed that the levy regulation has now been officially frozen by the central government.
“The important thing is that this situation does not happen again in the future. Now our focus is on restituting what has already been collected,” Iqbal stressed.
Iqbal will immediately coordinate with district and city governments to realise the refund. The Provincial Government has agreed with the regents and mayors to collect restitution claims for the tax that Bulog has already deposited with the tax office.
However, Iqbal admitted he does not yet know the detailed total estimate of the funds to be returned, as not all farmers sell their harvest to Bulog under the HPP scheme of Rp 5,500 per kilogram.
On the other hand, Iqbal explained that the meeting with farmers also discussed a long-term strategy to increase the Farmers’ Exchange Rate (NTP). This is especially relevant as the absorption of corn by the private sector outside Bulog is increasing.
“Many farmers are selling directly. Because of the Free Nutritious Meals (MBG) programme, demand for chicken meat is high, so many new farms are emerging,” Iqbal explained.
This high demand means independent farmers tend to mix their own feed and buy corn directly from growers. This direct transaction scheme is considered beneficial for farmers as it avoids the additional tax burdens that previously occurred.
“We also discussed how the welfare of corn farmers can continue to improve in the future. This is the most important thing,” Iqbal concluded.