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)