Jakarta Prepares Tax Relaxation Facing Global Geopolitics and El Niño

Jakarta Governor, Pramono Anung emphasized the commitment of the Jakarta Provincial Government to maintaining the economic stability of the community amidst global geopolitical uncertainty.

Jakarta will issue instruments related to taxation

In a press conference on the realization of the 2026 First Quarter Regional Budget, Pramono revealed that the dynamics of war in the Middle East and the threat of the El Nino phenomenon are two main challenges that the Jakarta Provincial Government is seriously anticipating.

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"Amidst challenging global dynamics, we face two challenges. First, the geopolitical war in the Middle East, whose end is unknown. Second, we will soon enter a prolonged El Niño from April to September," he said, Friday (4/17).

Pramono added that the Jakarta Provincial Government will strengthen fiscal policy by reducing regional taxes to address the impact of global geopolitical pressures and the El Niño phenomenon. He continued that the Jakarta Provincial Government is currently conducting a study on this matter to maintain healthy economic growth.

"Jakarta will issue instruments related to taxation that are more competitive and more attractive so that we can provide relaxation in dealing with geopolitical and economic pressures," he added.

The Jakarta Provincial Government will soon announce the number of tax policy packages that have been prepared. It is hoped that these policy packages will help reduce the burden on businesses and the public.

The Jakarta Provincial Government is also focusing on the availability of fuel oil and 3-kilogram LPG in Jakarta. Pramono Anung does not want disruptions to the global supply chain and energy distribution to seriously impact the community's basic needs. Therefore, Jakarta has also begun developing and optimizing the use of renewable energy in Jakarta.

"The Jakarta government, in particular, also monitors matters related to fuel and also 3 kilogram LPG because this is a very basic need," he stated.