Protected Forests and National Parks Exempt from Land Tax

JAKARTA – The government has stipulated that protected forests, nature reserves, forest tourism areas and national parks are exempt from Land and Building Tax (PBB). The provision is contained in Law No 12/1985 as amended by Law No 12/1994.

Article 3 of the PBB law lists five tax‑exempt objects, among them protected forests and national parks. The Forestry Law No 41/1999‑2004 classifies forests into conservation, protected and production categories; conservation forests include nature reserves, natural preservation areas and wildlife sanctuaries.

The tax exemption reduces fiscal pressure on agencies managing these areas, reinforcing Indonesia’s biodiversity conservation and supporting ecosystem services such as flood control and soil fertility.