Jakarta Implements 100% Property Tax Exemption for Private Schools

Historic Decision to Support Education Sector

In a groundbreaking move, the Jakarta Provincial Government has decided to grant a 100% exemption from Land and Building Tax (PBB-P2) to private schools operating in Jakarta. This comprehensive exemption covers all levels of private education, from elementary schools (SD) to junior high schools (SMP) and senior high schools (SMA). The policy, formalized through Governor Pramono Anung's Decree No. 857/2025, represents a significant shift in the government's approach to supporting the education sector.

Rationale Behind the Policy Change

The decision to exempt private schools from PBB-P2 was driven by the government's recognition of the financial burdens faced by these educational institutions. Yustinus Prastowo, Special Staff to the Governor, revealed that the idea emerged after reviewing existing policies and gathering feedback from private school administrators who struggled with substantial PBB payments. The move is seen as a response to long-standing challenges faced by private education providers in Jakarta.

Potential Impact on Tuition Fees and Education Accessibility

While the immediate effect of the tax exemption is the reduction of operational costs for private schools, the long-term implication could be a potential decrease in tuition fees for students. By alleviating one of the significant financial pressures on school operators, the government hopes to create a more sustainable and accessible private education system in Jakarta. The policy is particularly noteworthy as it marks a new approach in supporting private education infrastructure in the capital city.