PBB Reform

AGRARIAN minister and chairman of the National Land Agency (BPN) Ferry Mursyidan Baldan should be more careful in launching 'green' ideas. His concept of doing away with land and building taxation (PBB) has caused an uproar. Now, the idea has gone flat, like a tire without air.

At first, Ferry proposed getting rid of the PBB. After local governments loudly protested, he relented. Instead, he proposed that the PBB separate the land from the building. Landowners would only pay tax when they first acquired it and tax would only be imposed on buildings used for commercial purposes. Private homes and buildings used for social purposes would be tax-exempted. At the end, however, Ferry's idea came down to only one change. Only people unable to pay would be exempted from the PBB.

February 24, 2015