Jakarta. Governor Pramono Anung has signed a new decree that exempts homes valued below Rp 2 billion ($120,375) from land and building taxes. The policy also applies to apartment units priced under Rp 650 million ($39,122).

Pramono announced on Wednesday that the move is intended to ease the financial burden on middle- and lower-income families living in the capital.

However, the tax break only applies to a taxpayer’s first property.

“For first homes that meet the criteria, land and building taxes are fully waived,” Pramono said. “For a second home, we offer a 50 percent discount. There are no incentives for a third property and beyond.”

The tax exemption for first homes was initially introduced by former governor Anies Baswedan in 2022. Pramono has since expanded the benefit to include low-cost apartments.

“I believe most apartment units in Jakarta are priced below Rp 650 million, so this will have a significant impact,” he said.

Pramono also clarified that no similar tax relief will be offered for vehicle ownership.

“After a thorough review, we found that many residents own multiple vehicles but fail to pay the required taxes,” he said. “So no, vehicle owners must fulfill their tax obligations, regardless of how many vehicles they have.”