NJOP in Jakarta Comes Close to Market Price

Wednesday, February 12th 2014 Reporter: Erna Martiyanti Translator: Rini Elvira 2691

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(Foto: doc)

After three years of stagnant, the Tax Object Sales Value (NJOP) in Jakarta will increase this year, refers to the ongoing infrastructure development in the capital city. Later, NJOP increase will be adjusted and close to market price.

Head of Jakarta Tax Services Department, Iwan Setiawandi, admitted that Rural and Urban Land and Building Tax (PBB-P2) NJOP in Jakarta is never changed in these last three years. That is why it is now increased, so the development programs run by Jakarta Provincial Government would be easier.

“This is in line with development programs in Jakarta, which later will be easier,” stated Setiawandi in the event of PBB-P2 Notification of Tax Due (SPPT) Year 2014, at City Hall, Tuesday (2/11).

According to Setiawandi, the adjustment is based on Act No. 28/2009 about Regional Tax and Retribution. Basically, PBB-P2 NJOP uses selling and buying transaction prices normally exist in the public, which regulated in Article 1 number 40 and Article 79 Act No. 28/2009. The adjustment itself is intended to protect public’s importance because transaction price will increase in line with PBB-P2 NJOP increase.

“The consequence of PBB-P2 NJOP increase will of course give effect to the 2014 PBB-P2 revenue which will be returned to the public in form of infrastructure development such as the construction of Mass Rapid Transit (MRT), non-toll flyovers (JLNT), et cetera,” he explained.

The NJOP that Setiawandi meant is average price obtained from normal selling and buying transactions. And if there were no selling and buying transactions, NJOP is determined through price comparison with other similar objects, or new earned value, or replacement NJOP.

“NJOP value can be determined every three years. Except for particular tax objects, their values can be determined every year according to regional development. The determination of NJOP value itself is ratified with Governor Regulation,” he finished.
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