Indonesian Political, Business & Finance News

Viral Tax Arrears Seizure Threat Letter: East Lombok Revenue Agency Clarifies

| Source: DETIK_BALI Translated from Indonesian | Taxation
Viral Tax Arrears Seizure Threat Letter: East Lombok Revenue Agency Clarifies
Image: DETIK_BALI

A snippet of a Rural and Urban Land and Building Tax (PBB-P2) bill from the Regional Revenue Agency (Bapenda) of East Lombok, West Nusa Tenggara (NTB), has gone viral on social media. The letter contained a threat of asset seizure for tax objects in arrears.

Head of the East Lombok Bapenda, Hasni, spoke out regarding the circulation of the tax bill. Hasni stated that the East Lombok Regency Government has never seized houses or assets belonging to residents who are in arrears on tax payments. According to him, the letter format was issued by the central government.

“That wording has been in the system for a long time. The system originates from the Ministry of Finance when Land and Building Tax was still a central government tax. After it became a regency/municipal tax, the format and wording still follow the existing system,” Hasni explained on Monday (20/7/2026).

Based on the upload circulating on social media, the wording of the letter reads: 1. This Land and Building Tax Bill (STP PBB) must be settled no later than 1 (one) month from the date of receipt. 2. If the tax debt is not settled after the due date, the collection action will proceed with the issuance of a Distress Warrant, seizure, and auction.

The tax bill drew the attention of netizens because it was perceived as containing a threat of auction and asset seizure.

Hasni explained that the letter issued by Bapenda was a notification of tax payable due on 31 August 2026. According to him, the letter was sent as a notification to taxpayers who have arrears of a certain nominal amount.

He stressed that the government does not immediately seize taxpayers’ assets. Hasni cited the example that many taxpayers have been in arrears, but it has never resulted in asset seizure.

“There has been no seizure carried out by the Regency Government against public assets. That is just the wording in the system, it is not a policy applied in the field,” Hasni asserted.

He said that the East Lombok Regency Government has always prioritised persuasive measures towards residents who are in tax arrears. For instance, by providing a phased payment policy for companies experiencing business difficulties.

“If there is a company that is indeed experiencing operational constraints, we can provide relaxation through an instalment scheme. They are not immediately subjected to heavy actions,” said Hasni.

Hasni added that the collection process for taxpayers in arrears is carried out gradually through warning letters. If it is still not resolved, he continued, the Regency Government will pursue mediation with the prosecutor’s office.

“The collection is done through a first, second, and third warning, then mediated with the Prosecutor’s Office. There is no seizure of houses or public assets as is being widely discussed,” Hasni added.

Hasni urged the public not to misunderstand the contents of the PBB-P2 tax bill. He assured that the narrative circulating on social media does not reflect the tax collection practices carried out by the East Lombok Regency Government.

“What the public needs to understand is that the wording is indeed in the system. However, the government cannot possibly seize people’s houses just because of tax arrears,” Hasni concluded.

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