By: Nindya Putri
The central government affirms that the controversy over the increase in Rural and Urban Land and Building Tax (PBB-P2) in several regions, including Pati Regency, Central Java, is entirely under the authority of the local governments. This clarification is made to calm public opinion that links this policy to budget efficiency measures at the central level.
This explanation is important because public perception has begun to lean toward accusations that savings in central government spending force regions to seek additional revenue through taxes. The government considers this assumption incorrect and needs to be corrected to maintain a conducive situation.
Head of the Presidential Communications Office, Hasan Nasbi, explained that the PBB-P2 increase in Pati is purely a result of local dynamics. The decision was made through mechanisms involving the local government and the regional parliament (DPRD), following the applicable procedures.
He added that most tax rate adjustments were planned as early as 2023 or 2024. Some were only implemented this year, so it is understandable that the public feels the impact directly.
Hasan also noted that the portion of budget efficiency at the central level relative to the total funds managed by regional governments is only about four to five percent. This figure is considered too small to be the main reason for the tax increase in the regions.
According to him, turning this issue into a national debate will not benefit the public. Instead, he encourages resolving every controversy through open dialogue in a healthy atmosphere.
The central government also reminds that the relationship between national and regional fiscal policies follows different paths. The central budget is allocated for macro programs, while regions have full authority to regulate taxes and levies according to local needs.
State Secretary Minister, Prasetyo Hadi, also emphasized that the increase in PBB in several areas is fully the responsibility of local leaders. The policy is not an instruction from the central government.
He mentioned that almost every year some regions adjust tax rates. The reasons vary, from infrastructure financing to increasing public service needs.
Nonetheless, Prasetyo reminded that any decisions affecting the public burden should be considered carefully. Local leaders are urged to prioritize the welfare of their citizens above other interests.
According to him, the current economic challenges require prudent policies. The public already faces pressure from various sides, so additional fiscal burdens should be avoided unless necessary.
Gerindra Party Secretary-General and also Minister of Foreign Affairs, Sugiono, stated that his party is monitoring developments in Pati. He revealed that Pati Regent Sudewo has been asked to listen to public aspirations before making a final decision.
Sugiono said that Gerindra Chairman Prabowo Subianto advised that every political policy must consider the fate of the common people. This principle, he said, should be firmly held by local leaders throughout Indonesia.
He believes sensitivity to public voices will help maintain political stability and public trust. A responsive local government will more easily build social support.
The protest action at Pati’s city square on August 13, 2025, was the peak of public dissatisfaction. The crowd demanded the cancellation of the PBB-P2 increase that reached 250 percent compared to the previous year.
The demonstration was intense but remained under control. Security forces worked to maintain order so that aspirations could be conveyed without harmful incidents.
After considering inputs from various parties, the local government decided to cancel the PBB-P2 increase policy. The tax rates reverted to the 2024 regulations.
The central government welcomed this step. The decision was seen as proof that democratic dialogue is still functioning at the local level.
Hasan Nasbi viewed the experience in Pati as an important lesson. Quick responses to public aspirations can ease tensions and prevent prolonged conflicts.
He also reminded that cooperation between the central and regional governments is key to maintaining stability. Every fiscal policy, big or small, needs to be directed to strengthen people’s purchasing power.
Prasetyo Hadi added that the central government is always ready to assist regions in designing fair policies. According to him, development success is measured not only by economic growth but also by the sense of justice felt by the people.
Sugiono appreciated the Pati Regent’s willingness to revise the decision to accommodate citizens’ voices. He hopes this move becomes an example for other local leaders facing similar dynamics.
Going forward, the government encourages a more transparent tax rate determination process at the regional level. Early public involvement is expected to prevent friction and misunderstandings.
The central government also commits to maintaining intensive communication with all regional governments. The goal is to ensure local policies remain aligned with the national development direction.
In this context, budget efficiency at the central level will continue without sacrificing the interests of local communities. The government stresses that savings are targeted at expenditure items that do not directly impact public services.
The tax increase issue in Pati illustrates how quickly public opinion can form. However, resolving it through dialogue shows that democratic mechanisms remain effective means to ease tensions.
With synergy among the central government, regions, and society, fiscal policies can be implemented fairly and proportionally. The ultimate goal is to maintain social stability and promote equitable economic growth across Indonesia.
