Jakarta Extends PBB-P2 Tax Incentive Until 31 December 2025

The Provincial Government of DKI Jakarta has extended the Land and Building Tax for Rural and Urban areas (PBB-P2) incentive until 31 December 2025. The measure is set out in Governor Decree No. 281 of 2025 and has been effective since 8 April 2025.

The program reduces the tax principal by up to fifty percent for tax years 2013–2019, twenty‑five percent for 2010–2012 (in addition to earlier relief) and five percent for 2020–2024. It also removes administrative sanctions, waiving both installment interest and late‑payment interest for payments made within the same period, and cancels fines for taxpayers who have already paid the principal but still face interest charges.

By lowering the total amount due, the policy aims to encourage settlement of PBB-P2 arrears and improve tax compliance in Jakarta. Taxpayers can fulfill their obligations by paying only the principal without additional interest or penalties.