MRT Project Can Increase Local Tax Revenue

Jakarta Tax and Regional Retribution (BPRD) conducted field monitoring at the MRT's HI Roundabout Station, Central Jakarta. It was purposed to see the potential of additional local tax revenue.

In Sudirman-Thamrin for instance, the current NJOP is Rp 75 million per meter, whereas the market price is Rp 100 million per meter. I hope it could increase 30 percent

Jakarta BPRD Head, Edi Sumantri disclosed, through MRT project, he has a breakthrough to increase the local tax revenue. Surely, the project could increase the land's taxable value of property (NJOP) in its surroundings.

"In Sudirman-Thamrin for instance, the current NJOP is Rp 75 million per meter, whereas the market price is Rp 100 million per meter. I hope it could increase to 30 percent," he expressed, Thursday (1/19). 

Design Changes on MRT Won't Affect Operational Target

There are several types of taxes that can be extracted its potential, such as restaurant and business area along the MRT track. Counting on all potential local tax here is very necessary for the preparation of the mid-term regional development plan (RPJMD) Jakarta until 2020.

"So we can predict the local tax revenue first. And after it is done, the MRT can be implemented," he stated.

It is in line with declaration of the acceptance of the land and Building Tax (PBB) in 2020 that is targeted to hit Rp 10 trillion, from the current amount is still at Rp 7.7 trillion. He was optimistic it could be realized if the MRT has been in operation targeted at the beginning of 2019.