Indonesian local governments implement diverse strategies to boost land and building tax collection

Local governments in Indonesia are employing different strategies to address challenges in collecting Rural and Urban Land and Building Tax (PBB-P2).

In Unyur Village, Serang City, officials are introducing incentives to boost tax realization. Village Head Nana Heryatna announced that luxury electronic goods will be provided as rewards to neighborhood heads (RT and RW) whose areas achieve a minimum cumulative tax payment of 80 percent. These prizes are intended to motivate local leaders to collect payments through door-to-door or collective methods, with distributions planned for November and December 2026.

Conversely, Cirebon Regency is facing difficulties meeting its tax targets. Regent Imron expressed frustration after reports showed some villages have achieved realization rates as low as 5.2 to 20 percent. As of July 2026, the regency had collected Rp60.5 billion of its Rp105.5 billion target. Officials cited low taxpayer compliance and the habit of residents delaying payments until harvest season as primary obstacles to meeting the revised November 2026 deadline.