“State Secretary: PBB-P2 Tax Policy Falls Under Regional Government Authority”
Jakarta – Minister of State Secretary Prasetyo Hadi emphasized that the decision to raise the Rural and Urban Land and Building Tax (PBB-P2) in Pati Regency by up to 250 percent is entirely under the authority of the local government and has no connection with central government policy. This affirmation reflects the central government’s commitment to respecting regional autonomy, while ensuring that every local policy remains in favor of the people.
“There is no such thing as (minimal budget) being the cause—no,” said Prasetyo Hadi at the Presidential Palace Complex in Jakarta.
He added that every regional head has different policies according to the characteristics of their respective areas.
“Those are indeed the policies of each local government, and they certainly vary from one regency to another,” he explained.
Prasetyo Hadi stated that his office has coordinated with Minister of Home Affairs Tito Karnavian to respond to the dynamics in Pati Regency. He reminded all public officials, both at the central and regional levels, to be cautious in making statements and formulating policies, especially those that directly affect the public.
“Especially when delivering policies that will impact the community,” he stressed.
The central government appreciated Pati Regent Sudewo’s move to respond to public concerns by lowering the PBB-P2 rates after the initial policy triggered objections. This attitude was considered a form of openness in accommodating community input.
Minister of Home Affairs Tito Karnavian added that his ministry is ready to provide guidance to all regional heads in formulating fiscal policies.
“Regional tax policies must align with the economic capacity of local communities so that development can continue without burdening citizens,” he said.
He underlined that the Ministry of Home Affairs continues to monitor so that similar policies in other regions do not trigger social unrest.
From the security side, Central Java Police Public Relations Chief, Commissioner Artanto, stated that the police are committed to maintaining regional stability while ensuring that citizens’ aspirations can be conveyed in an orderly manner.
“We urge all elements of society to express their opinions through peaceful channels. Security is a shared responsibility,” said Artanto.
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