APBD 2026 Rules Bar Local Governments Raising NJOP for Tax

The Ministry of Home Affairs stated on 27 October 2025 that all local governments are prohibited from raising Property Tax (PBB) rates or increasing the Property Tax Object Value (NJOP) when drafting the 2026 regional budget (APBD). The prohibition follows Ministerial Regulation No. 14/2025, which serves as the primary guideline for the 2026 budget.

Circular Letter 900.1.13.1/4528/SJ, issued on 14 August 2025, requires that PBB and NJOP determinations consider the burden on low‑income households. Local heads are instructed to postpone or revoke any tariff increases and to retain the previous year’s regulations if the rise would be onerous. Coordination with the Directorate General of Regional Finance and oversight by governors are also mandated.

The measure aims to prevent excessive tax pressure on low‑income groups and to uphold fiscal fairness. Non‑compliant regions may be required to adjust their tax policies in line with central directives. Ongoing monitoring will ensure adherence throughout the 2026 fiscal year.