Government Reviews the Implementation of Progressive Tax for Land Rights Violators

The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (Agraria dan Tata Ruang/Badan Pertanahan Nasional – “ATR/BPN”) is reviewing the implementation of a progressive tax for land rights holders who violate regulations regarding land control and utilization. Andi Renald, Director of Land Rights Control, Land Use Conversion, Islands, and Specific Areas at the Ministry of ATR/BPN, believes this progressive tax concept would serve as a sanction against land control that exceeds established limits.

"I think regulations regarding this could be prepared for cases where rules are violated, or control limits are exceeded," said Andi.

According to Andi, the proposal to implement a progressive tax for such violators is part of a strategy to control land possession and ownership. This instrument aims to curb inequality in land control and reduce the phenomenon of abandoned land resulting from possession without actual utilization.

Andi stated that the policy is currently in the internal discussion stage. The Ministry of ATR/BPN will conduct a study to determine the format, procedures, rates, and criteria for applying the progressive tax provisions.