JAKARTA – Indonesian President Prabowo Subianto expressed regret over the decision of the Pati Regency Government to raise the Rural and Urban Land and Building Tax (PBB-P2) by as much as 250 percent.
The policy immediately triggered large-scale demonstrations demanding that Pati Regent Sudewo resign from his current position.
Responding to the controversy, Minister of State Secretary (Mensesneg) Prasetyo Hadi emphasized that President Prabowo Subianto regretted the turmoil that has emerged among the people of Pati.
“Yes, of course he regrets it. What I conveyed earlier is his response to whoever was behind this,” said Prasetyo.
Prasetyo also denied the assumption that the Pati PBB hike was caused by a budget shortfall from the central government.
He stressed that, in principle, each region has its own policies in managing its residents, including issuing regulations on taxation.
“No, the cause is not that (budget shortfall),” said Prasetyo.
“That is indeed the policy of each local government and it varies from one regency to another,” he explained.
Meanwhile, Presidential Communications Chief Hasan Nasbi also stressed that the issuance of the policy was entirely under the authority of the local government.
He hoped that all parties could resolve the issue through dialogue and avoid unrest.
“For the case in Pati, we hope it can be resolved properly,” he said.
“All parties should engage in dialogue, meet with a cool head, and think calmly,” he added.
Hasan rejected the view linking the policy to central government budget efficiency measures in early 2025.
“If there are specific incidents like in Pati, this is purely a local dynamic,” he asserted.
He further explained that the determination of PBB-P2 rates is made through local regulations in collaboration with the regional council (DPRD), with some even set as early as 2023 or 2024.
On the other hand, Director General of Regional Autonomy at the Ministry of Home Affairs (Kemendagri) Akmal Malik revealed that his ministry has asked the Central Java Provincial Government to provide guidance and oversight for the policy in Pati.
“Indonesia implements a two-tier autonomy policy. If there are problems at the regency/city level, the provincial government will take steps for guidance and facilitation,” he explained.
The Ministry of Home Affairs stressed that such oversight is intended to ensure local tax policies remain aligned with the interests of the people and do not cause prolonged social unrest. (*)
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