Local Governments Prohibited from Raising NJOP for Property Tax

The Ministry of Home Affairs, in Announcement No. PENG-3/PJ/2025, stated that all local governments are prohibited from raising the Property Tax Base Value (NJOP) for the Land and Building Tax (PBB) in the 2026 fiscal year. The rule follows Permendagri 14/2025 and was released on 28 October 2025.

The prohibition serves as the primary guideline for setting regional tax and levy revenue targets in the 2026 regional budget (APBD). Targets must consider tax potential based on the last three years of actual receipts, extensification results, and regional macro‑economic policies, as outlined in the attachment to Permendagri 14/2025.

By freezing NJOP, local authorities cannot increase property‑tax burdens abruptly, helping keep PBB revenue stable throughout the next fiscal year. This measure also supports consistent financial planning for regional governments.