NTB Corn Farmers Complain of Excessive Tax Burden

Corn farmers from Lombok and Sumbawa Islands, West Nusa Tenggara (NTB), have voiced their grievances over having to bear the burden of multiple taxes, despite the fact that a single harvest does not guarantee a profit. The latest levy was an additional income tax of 1.5 percent of the Government Purchase Price (HPP) imposed by the State Logistics Agency (Perum Bulog) NTB. Representatives of the corn farmers visited the West Nusa Tenggara Governor’s Office on Wednesday (24/6/2026) to lodge their complaint with Governor Lalu Muhamad Iqbal. Chairperson of the NTB Institute for People’s Aspirations and Appeals (LASER), Kamsiah, urged the Provincial Government to advocate for the restitution of the deducted tax. She stated that the policy, which was in effect during 2025, heavily burdened farmers. ‘This additional tax amounts to billions of rupiah. It is extremely burdensome for the farmers,’ Kamsiah said. She noted that the complaint had been raised over the past two months. Based on data compiled from Bulog, the value of the additional tax deduction ranged from IDR 700 million to IDR 1 billion per deduction period. ‘This policy only came into effect in 2025 and there have been three to four deduction periods. So, we can say the total has reached more than IDR 4 billion,’ Kamsiah explained. She added that the 1.5 percent deduction further squeezed farmers who are already burdened with other levies, such as Land and Building Tax (PBB), taxes on seed and pesticide purchases, plus the obligation of zakat for Muslims. ‘Farmers have so many expenses. When farmers experience crop failure, the government sometimes turns a blind eye. But when they succeed, they become tax objects. As a result, farmers sometimes only break even, and often they even suffer losses,’ Kamsiah lamented. She expressed hope that in the future there would be no more similar tax burdens for crucial food commodities like corn. ‘We are tired of going back and forth to Bulog with no results. They say they are only carrying out the orders of the law. So that is the reason we are complaining to the governor,’ Kamsiah stressed. Governor Iqbal agreed that food commodities such as corn and rice should be exempt from Value Added Tax (PPN). He was puzzled by the collection of the additional 1.5 percent tax, which had been in effect for three months in 2025, but confirmed that the regulation for the levy had now been officially frozen by the central government. ‘The important thing is that this situation does not happen again in the future. Now our focus is on restituting what has already been collected,’ Iqbal stated. He will immediately coordinate with district and city governments to realise the refund. The Provincial Government has agreed with the regents and mayors to collect restitution claims for the tax that Bulog has already paid to the tax office. However, Iqbal admitted he did not yet know the exact total amount of funds to be returned, as not all farmers sell their harvests to Bulog under the HPP scheme of IDR 5,500 per kilogram. The meeting also discussed long-term strategies to improve the Farmers’ Terms of Trade (NTP), especially as private sector absorption outside Bulog is increasing. ‘Many farmers are selling directly. Because of the Free Nutritious Meals (MBG) programme, demand for chicken meat is high, so many new farms are emerging,’ Iqbal explained. This high demand means independent farmers tend to mix their own feed and buy corn directly from farmers. This direct transaction scheme is considered beneficial for farmers as it avoids the additional tax burdens that previously occurred.