Unravelling the Alteration of the Rural and Urban Sector Property Tax Base in Indonesia: Impact of the HKPD Act

This study aims to explore the underlying concept of taxable value, its history, and the background of its revival in the HKPD Act of 2022. This study is based on a qualitative approach and involves in-depth interviews with scholars and stakeholders from government institutions conducted between September and October 2023. After conducting literature studies to create the interview framework, the data validation process involved triangulating data sources from academics, local governments, and central government. Content analysis is employed as a tool to achieve the research objectives. The research revealed that the NJKP concept was put into practice in the land and building taxes (PBB) provision under the PBB Act 1985 to prevent taxpayers from overburdening when the assessed value (Nilai Jual Objek Pajak - NJOP) is hiking excessively. The PDRD Act 2009 then omitted the NJKP concept from the land and building taxes for urban and rural sector (PBB-P2) regulation as the central government believed that local governments could considerably improve their revenues through regular updates of the NJOP after the Law gave local governments the authority to manage PBB-P2