Land market prices set to increase

JAKARTA (JP): The city administration will increase the taxable property price (NJKP) of land and building tax from 20 percent to 40 percent of the market price of properties which have a market price of Rp 1 billion (US$105,263) and over.

Jakarta Regional Taxation Office head Djonifar A.S. said on Tuesday after a hearing with City Council that the new NJKP would be imposed starting Jan. 1.

Djonifar said the increase was needed "to improve city revenue, but at the same time it will not burden the poor".

According to Djonifar, the hike has already been included in government regulation No. 46/2000 on land and building tax signed by President Abdurrahman Wahid on June 26.

With the increase the city administration is expected to receive a total of Rp 530.55 billion from property tax alone.

"In the past, almost 60 percent of the total land and building tax revenue in the capital came from 35,000 taxpayers who owned vast properties. Only 40 percent came from 1.3 million taxpayers owning small and medium properties," Djonifar said.

The 35,000 taxpayers each paid at least Rp 500,000 per year in land and building tax.

Market prices in the capital range from Rp 20,000 per square meter on the Thousand Islands to Rp 14 million per square meter on Jl. Sudirman, South Jakarta.

Djonifar said his office would also increase the stated value of taxable property (NJOP) of several areas in the capital as the land usage in the areas had change.

"For example, in West Jakarta we will adjust the market price of land in Puri Indah and Taman Permata Buana housing complexes because before the areas belonged to locals and now there are mansions there," Djonifar said, citing several areas in North Jakarta such as Pasir Putih and Pantai Mutiara. (dja)