City's plan to raise NJOP meets opposition

City's plan to raise NJOP meets opposition

JAKARTA (JP): City councilors opposed yesterday the city
administration's plan to increase the value of taxable properties
(NJOP) for fear of furthering an economic burden on people during
the monetary crisis.

Head of Commission C for city revenue Amarullah Asbah and
member of Commission D for development affairs Lukman Mokoginta
said the city administration should reevaluate the plan.

Amarullah said the plan would be reasonable if it was applied
during better economic conditions.

"But conditions are far different. It's inappropriate to
increase the NJOP now," he said.

A special team, consisting of representatives from various
related parties, is currently working on the plan to hike the
value of taxable properties.

According to city data, the lowest taxable property value this
year is in Thousand Islands at Rp 20,000 (US$2.10) per square
meter of land and the highest value is along Jl. MH Thamrin,
Central Jakarta, and Senayan, South Jakarta, at Rp 14 million per
square meter.

The 1998 value of taxable properties in the city's five
mayoralties are: Central Jakarta with its highest value at Rp 14
million per square meter and lowest at Rp 335,000 per square
meter; West Jakarta with its highest at Rp 9 million and lowest
at Rp 82,000; North Jakarta with its highest at Rp 6 million and
lowest at Rp 20,000; East Jakarta with its highest at Rp 4
million and lowest at Rp 103,000 and South Jakarta with its
highest at Rp 14 million and lowest at Rp 160,000.

Last year's value of taxable properties in the city was
between five percent and 30 percent less than this year's.

Lukman Mokoginta said people had been facing hardship due to
skyrocketing prices of staple foods and the fall in the value of
the rupiah. "The higher value in taxable properties will only
burden them further," he said.

"So don't implement the policy right now... just wait until
the crisis ends and then we can discuss the matter later," he
said.

Lukman said that during the economic crisis, the
administration should be careful in making decisions so it would
not create an undesirable impact on people.

However, the deputy governor of administrative affairs, Abdul
Kahfi, said the new NJOP was rational as it had been carefully
calculated.

"But we will listen to the council's considerations as long as
it has strong arguments," he said.

A. Assegaff, head of the city's office for foreign investment
and property taxes, said yesterday the hike in the NJOP was
considered normal due to growth of certain areas in the city and
its market price fluctuation.

"For instance, some areas, which were considered only
residential sites last year, have been changed into malls,
apartments and even hotels this year.

"Based on development growth in such areas, the value of
taxable properties should be raised," he said.

The market price of properties in such areas would usually
rise significantly due to facilities built there, he said.

"The value of taxable properties in Jakarta will continue to
rise for years to come. It's almost impossible for the value to
fall because we are in a stage of development."

As long as development in the city continued, there would
always be a certain price tag on properties, he said. (edt/ind)