Jakarta (ANTARA) - Home Affairs Minister Tito Karnavian has called on regional governments to step up public outreach regarding the exemption of Land and Building Rights Acquisition Tax (BPHTB) and Building Approval Permit (PBG) retributions for low-income residents.

In a statement cited in Jakarta on Saturday, he underlined the importance of active dissemination of information on the local property-related levy relief by regional administrations at the municipal, district, sub-district, and village levels.

"Local settlement and housing offices must take part in advancing this agenda," Karnavian stated while reviewing a public service mall in Medan City, North Sumatra, alongside Minister of Housing and Settlement Areas Maruarar Sirait, on Friday (October 10).

During his official visit, he alluded to the relatively low number of residents in Medan utilizing the PBG levy exemption compared with other regions.

"I was told that this substandard trend stems from the high land prices here. However, it should be noted that although land prices in Jakarta, Bandung, Bogor, and Surabaya are similarly high, these regions still have low-income residents benefiting from the PBG levy relief," he pointed out.

He stressed that the exemption of taxes and permit fees for low-income residents applies not only to new housing developments but also to self-initiated renovations, reflecting the central government’s commitment to making housing more affordable and accessible.

"Levies linked to BPHTB have now been waived for low-income residents, and this fiscal relief policy also covers the retributions for PBG, formerly known as IMB (building permits)," he said.

Despite the policy’s noble aim, he acknowledged that it has not yet been optimally utilized due to a lack of information dissemination.

"I believe that many people are still unaware of the conveniences this policy offers. That’s why we want regional governments to promote this policy more broadly," he added.

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Translator: Fianda S, Tegar Nurfitra
Editor: Azis Kurmala
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