The Faculty of Administrative Sciences, University of Indonesia (FIA UI) provided assistance in preparing for the implementation of the Building Approval (PBG) levy policy in Depok City. The City Government of Depok faces a number of challenges in implementing the Building Approval Retribution (PBG) policy due to various reasons, both regulatory and technical in its implementation.

Responding to the discussion material submitted by Wulandari Kartika Sari, M.A Lecturer in Fiscal Administration and Head of the Community Service Team for the Department of Fiscal Administration, FIA UI, regarding the change in the IMB policy to PBG, representatives of the Depok DPMPTSP Service Sector stated that after conducting a simulation, there is a potential for a decrease in receipt of retribution from PBG which has the potential to reduce PAD. This condition is inconsistent with the objective of promulgating the HKPD Law to encourage an increase in PAD as well as strengthen fiscal decentralization.

“The regional government will be burdened by the decrease in PAD while the administrative costs that must be carried out for the implementation of PBG are greater than the IMB, even though services to the community must still be carried out. Meanwhile, the community is also experiencing problems due to increased requirements related to technical plan documents and documents for estimated construction costs which incur additional administrative costs,” said the representative for the Depok City DPMPTSP Service Sector.

Dr. Inayati, M.Sc. said that this condition indicated the need to establish harmonious communication and coordination between the central and regional governments in the formulation of PBG regulations. The aim is to ensure that the implementation of PBG’s legal products runs well and is effective, especially since PBG policies have a number of technical aspects.

“Integration and collaboration between related agencies in providing services is one of the keys to success in realizing the implementation of the PBG levy policy. PBG levy collection requires an integrated system to solve various problems such as the issuance of multiple IMB numbers that have occurred so far; less efficient export of reporting data; and difficulty updating function data. In addition, regulations are needed that clearly regulate the procedures for implementing and collecting PBG fees in Depok City,” said Inayati.

“Perhaps the central government has good intentions to simplify and standardize building permits throughout Indonesia. However, it needs coordination with various regions. Many regions have established licensing arrangements, with advanced information systems and optimal reception. So, when there is a change in PBG, it has to readjust a lot and hinder services to the community. We hope that the central government can entrust implementation to local governments so that the goal of serving the community can be realized,” said Rahman Pujiarto as Secretary of the Depok City DPMPTSP (Investment and One-Stop Service Office).

In accordance with Government Regulation Number 16 of 2021 concerning Implementing Regulations of Law Number 28 of 2002 concerning Buildings, the government has changed the rules regarding Building Permits (IMB) to Building Building Approvals (PBG), which was issued on February 2, 2021. Retribution levied PBG is classified under the type of Certain Licensing Retribution in accordance with Law Number 1 of 2022 concerning Central and Regional Financial Relations (HKPD). The regional government appointed as the executor and the levy collector were asked to immediately implement this policy, with the issuance of a Joint Circular Letter (SEB) of four Ministers regarding the acceleration of the Implementation of Building Approval Levies in August 2022.

To be able to implement the collection of PBG levies, local governments, including the City of Depok, must have a legal umbrella in the form of a regional regulation. This is of course a challenge for the regional government because the preparation of regional regulations requires a long time. However, the rules regarding PBG state that local governments may not delay PBG services even though they do not yet have a regional regulation.

The SEB regulates that for regions that have not yet stipulated Regional Regulations on Regional Taxes and Regional Levies in one arrangement of Regional Regulations, they can temporarily implement PBG based on Regional Regulations regarding IMB Levies or Regional Regulations regarding Certain Licensing Charges which regulate IMB fees. This arrangement raises regional government questions about the appropriateness of using the IMB regional regulation as the legal basis for collecting PBG levies. In addition, there are still a number of technical problems in the implementation of the collection of PBG levies.

Related to this condition, Rahman Pujiarto as Secretary of DPMPTSP (Investment Service and One-Stop Services) of Depok City stated “We encountered difficulties in implementing this PBG because it was different from the regulations in the IMB. In addition, when the PP came out, we experienced difficulties because the PBG implementation process involved three different agencies, namely the Public Works and Spatial Planning Office (Dinas PUPR), the Housing and Settlements Agency (Disrumkim), and the DPMPSTSP for Depok City. Due to the different institutional forms in the regions, we also experienced several other technical difficulties,” added Rahman.

“In this case, the City Government of Depok needs to collect PBG levies through PTSP as the IMB levies have been collected so far. Furthermore, in order to accommodate the arrangements for collecting PBG levies in PP 16 of 2021 during the transitional period, the Depok City Government can form a PBG Task Force which involves 3 institutions, namely DPMPTSP, the Housing and Settlements Service, and the Public Works and Public Housing Office under the coordination of DPMPTSP, ” said Murwendah, MA in response to what was conveyed by Rahman.

The Assistance Activity for Mapping Opportunities and Challenges in the Implementation of the Building Approval Retribution Policy (PBG) in Depok City will take place from November to December 2022 through a series of discussion activities. The Community Service Team consists of several academics from FIA UI, namely Head of the Administrative Sciences Department Dr. Inayati, M.Sc; Murwendah, S.I.A, M.A as secretary of the FIA UI DIAF; Wulandari Kartika Sari, S.Sos, M.A; Mohamad Luhur Hambali, S.I.A., M.A.; and supported by students from KOSTAF FIA UI and other support staff. While the Mayor of Depok was represented by Rahman Pujiarto as the Secretary of DPMPTSP; Dudi Miraz Imaduddin as Head of the Depok City Disrumkim; Damay Sherdipa as Complaints, Supervision and Regulation Coordinator; and Irwansyah from the field of Data and Information; and Mia Setyani, from the DPMPTSP Service Division, as well as other participants from two related agencies.