City land prices hit Rp 10 million mark
City land prices hit Rp 10 million mark
JAKARTA (JP): The price of land on Jl. Thamrin, Jakarta is predicted to reach a record Rp 10 million (US$4,651) per square meter this year, Rp 2 million more than last year, an official said.
The head of the city tax office, Arie Soelendro, said yesterday that the projection was the result of an annual review made by his office to determine property taxes in the area.
Arie said in a hearing with the city council that his office reviews the value of taxable property every year, including land and building.
"This year the value of land in the city will range between Rp 64,000 to Rp 10 million per square meter," Arie said.
He added that last year the value ranged from Rp 20,000 and Rp 8 million per square meter.
"The increase in the property value is caused by development activities in the city," he said.
Arie said that due to the increasing prices or values of land the amount of property tax will also increase, about 25 percent for land and 5 percent for the building.
Therefore, city revenues from property taxes in the 1996/1997 fiscal year are expected to increase from Rp 284.4 billion to 371.45 billion, up by 30 percent, he said.
The property tax is the accumulation of the value of taxable property divided by 1,000.
A councilor from the Armed Forces faction, M. Amman, said that those who can't pay the tax can ask for a reduction.
"In a hearing the representative of the tax office said that people such who have retired but live in expensive areas such as Menteng, Central Jakarta can ask for dispensation to reduce the tax," he said.
Land prices
The price of land along Jl. Thamrin is the highest in Jakarta, while the lowest is Rp 335,000 per square meter in Kemayoran, Johar Baru, Kramat, Petamburan and Bendungan Hilir subdistricts.
In South Jakarta, the land along Jl. Jendral Sudirman is the most expensive at around Rp 9 million per square meter, while the cheapest is Rp 103,000 per square meter in Srengseng Sawah, Jagakarsa and Lenteng Agung subdistricts.
In West Jakarta the highest price is Rp 7 million for a square meter of land along Jl. Gadjah Mada and Jl. Hayam Wuruk, while the lowest is Rp 64,000 per square meter in Tegal Alur and Kamal subdistricts.
In North Jakarta, the highest price is Rp 5 million per square meter in Ancol subdistrict and Jl. Mangga Dua Raya, and the lowest while the lowest is Rp 64,000 per square meter in Rorotan and Marunda subdistricts.
"The increase in land prices in North Jakarta is caused by rapid development in Sunter Agung, Sunter Jaya and Kelapa Gading," he said.
In East Jakarta the highest priced land is along Jl. MT. Haryono at Rp 5 million per square meter and the lowest in Cipayung district at Rp 82,000 per square meter. (yns)