PORTALJABAR, GARUT REGENCY - The Garut Regency Government (Pemkab) is seriously working on a strategy to increase Regional Original Income (PAD) by optimizing Rural and Urban Land and Building Tax (PBB-P2).
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This effort was realized in a Focus Group Discussion (FGD) in collaboration with the National Development Planning Agency (BAPPENAS) and the World Bank in the Bappeda Meeting Room of Garut Regency, Monday (20/10/2025).
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Garut Regent Abdusy Syakur Amin expressed his honor for the support from the two national and international institutions in helping to increase fiscal revenue in Garut.

Syakur revealed that increasing PAD has become his main focus, considering that Garut Regency's PAD was previously still limited.
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"It is certainly an honor for us to have two teams playing a significant role in Indonesia, namely BAPPENAS and the World Bank, come to help increase fiscal revenue in Garut Regency," he said.
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Syakur explained that Garut Regency has experienced significant changes since the last determination of the Taxable Object Sales Value (NJOP) in 2017.

The construction of major roads, main roads, and real estate and residential areas is predicted to have a positive impact on PBB-P2. As a follow-up, the Garut Regency Government plans to increase the NJOP (Value-Based Property Tax) through a specific strategy.
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"We will try to increase the NJOP, calculating that those with a tax of Rp. 25,000 will not be seriously affected because we will lower the percentage," he said.
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‎Representative of the World Bank Urban Team, Indonesia Office, Griya Rufianne, explained the reasons for focusing on PBB-P2.

According to him, globally, land and building tax or property tax is a very stable type of tax and the object does not move, so it is very optimal for use.
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"We are focusing on the PBB P2 area, because globally, land and building tax and property tax are actually very stable types of taxes," he said.
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He added that Garut, along with Bandung City, was selected as the first pilot location in Indonesia for the implementation of the World Bank's global guide to diagnosing property tax potential.
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‎BAPPENAS RI representative Tari Lestari emphasized that this collaboration is an effort to increase regional income, in accordance with the mandate in the national development planning document.
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"Optimizing the potential of regional taxes and levies is an important element in the pillars of fiscal policy," he said.
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He emphasized that regional financial management through intensification of regional revenues is the basis for BAPPENAS to be present and continue the study, which is stated in the 2025-2026 RPJPN.
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This FGD is expected to yield an accurate diagnosis of the potential for PBB-P2 in Garut Regency, enabling the local government to make informed decisions and public policies to strengthen its fiscal independence. (Garut Regency Communications and Information Office/UPI)