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Jakarta Post

Taxable value of property hike to prompt shift in land use: Expert

Ivany Atina Arbi (The Jakarta Post)
Jakarta
Fri, July 6, 2018

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Taxable value of property hike to prompt shift in land use: Expert High-rise apartment and office buildings increasingly define the skyline of Jakarta. (Tempo/Tony Hartawan)

T

he Jakarta administration’s decision to increase the taxable value of property (NJOP) in some areas of the city can lead to a shift in the use of land--from residential areas to business areas, according to an urban expert.

Trisakti University urban expert Nirwono Joga explained on Friday that residents might feel a heavier burden when it comes to paying their property tax (PBB), as the result of the NJOP increase. This increases the likelihood of residents selling their properties or turning them into more “productive” properties, like cafes, restaurants, office buildings and so on.

“An area that is supposed to be a residential one, could eventually change into a business district. As you can see today, many cafes have emerged in residential area like Tebet, South Jakarta, because of the continuously increased NJOP there,” Nirwono told The Jakarta Post.

The expert urged the city administration to reconsider its move to hike the NJOP. He expressed hope that the administration would protect the purpose of residential areas in a bid to maintain the capital’s spatial order.

According to Gubernatorial Decree No. 24/2018 on the new NJOP, the city has increased the NJOP by as much as 19.54 percent in some areas, namely Gambir in Central Jakarta, Kebayoran Lama and Tebet in South Jakarta, Penjaringan in North Jakarta and Kebon Jeruk in West Jakarta.

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