Indonesian Political, Business & Finance News

Kupang City Government Waives BPHTB and PBG Fees for Low-Income Residents

| Source: DETIK_BALI Translated from Indonesian | Social Policy
Kupang City Government Waives BPHTB and PBG Fees for Low-Income Residents
Image: DETIK_BALI

Kupang Mayor Christian Widodo has affirmed that the Kupang City Government has followed up on the central government’s instructions regarding the exemption of Acquisition Duty on Land and Buildings (BPHTB) and Building Construction Approval (PBG) for low-income residents (MBR).

“BPHTB is handled at the Regional Financial and Asset Agency (Bapenda); if you are low-income or MBR and want to know the requirements, please go to Bapenda,” said Christian on Wednesday (6/5/2026).

Meanwhile, for PBG, he said, the processing is done at the Public Works and Public Housing Department (Dinas PUPR) for those wishing to undertake construction.

“PBG goes to PUPR; this has been requested from the centre for a long time, but many regions have not yet implemented it,” he stated.

He noted that Kupang City Government’s swift action in implementing this policy is a response to the central government’s directives.

“That’s why by implementing it, we are carrying out instructions from the centre. It means this is an achievement; our region responds quickly. There are also regions that certainly haven’t,” he added.

Christian explained that previously, processing BPHTB incurred a 5 percent fee when residents first purchased land. That deduction went to the Kupang City Government. However, with the latest mayoral regulation (perwali), that fee has been eliminated.

“So the perwali has already been signed by me, so BPHTB for MBR is now free,” he said.

The requirements to obtain this facility include having a Kupang City Resident Identity Card (KTP), a Certificate of Indigence from the sub-district, and other documents that can be obtained at the Kupang City Bapenda.

In addition to BPHTB, the Kupang City Government is also waiving PBG for low-income residents. Christian explained that PBG is a new form of Building Erection Permit (IMB).

“PBG is a permit to build, expand, or alter a building in accordance with safety and security standards. For low-income residents, that is now free or zero,” he clarified.

The policy of exempting BPHTB and PBG for MBR is expected to alleviate the burden on the community in handling land legality, buildings, and house construction permits.

The NTT PSI Chairman emphasised that this policy only applies to low-income residents.

“Or what we call MBR (Low-Income Residents) in Kupang City is now free,” Christian stressed.

He also urged the community to take advantage of the programme and to educate residents who need it. Christian affirmed that information regarding this policy will continue to be conveyed to the public, including through his social media.

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