Legislator Says Private Schools' PBB Exemption Is the Right Policy

Chairman of Jakarta City Council's Commission E, M Subki supports the Jakarta Provincial Government's move to waive Rural and Urban Land and Building Tax (PBB-P2) for private elementary, middle, and high schools in Jakarta starting next year.

We strongly support this

Subki assessed that education and health facilities have a strategic role for society, so it is appropriate that they are not burdened with taxes.

"We strongly support this . Education and health facilities should indeed be exempt from land tax," he said, Sunday (12/28).

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He added that there are many other taxable objects that can be sources of regional revenue. Therefore, exempting private schools from PBB is considered an appropriate policy.

Subki hopes this policy will help private schools maintain their operational sustainability. With the elimination of PBB-P2 obligations, schools are believed to have more fiscal space to develop educational services.

"If PBB is made free, schools will certainly benefit more. Hopefully, this won't disrupt the government's cash flow. God willing, it won't be much, as there are still many other potential taxes," he stated.

According to him, tax exemptions for schools, hospitals, and other public facilities will create a better climate and support improvements in the quality of public services in Jakarta.

As reported earlier, the Jakarta Provincial Government issued Gubernatorial Decree Number 857 of 2025 about a 100 percent exemption from PBB-P2 for all private schools in Jakarta starting next year. This policy aims to ease the operational burden on schools and address complaints from private education administrators regarding the high tax burden.

With the elimination of the PBB-P2 obligation, it is hoped that the school budget can be diverted to more pressing needs, especially in improving the quality and access to education for Jakarta residents.