Socio Today
Jakarta, October 22, 2025 – In a fervent display of indignation that quickly garnered public attention, Rieke Diah Pitaloka, a Member of Commission VI of the House of Representatives (DPR RI) from the PDI Perjuangan faction, publicly voiced her strong disapproval regarding a Property Tax and Land (PBB) bill issued to Pesantren Al-Fath Jalen, an Islamic boarding school in Tambun Utara, Bekasi Regency, formerly managed by the late Kiai Yasin. The incident, captured in a video uploaded to her personal Instagram account (@riekediahp) under the "Viral for Justice" channel with the hashtag #SavePesantrenIndonesia, saw Pitaloka directly address Minister of Finance Purbaya Yudhi Sadewa, questioning the legality and fairness of the tax demand.
The lawmaker’s impassioned plea, delivered during a visit to the pesantren, highlighted a critical oversight in the implementation of tax regulations concerning non-profit religious and educational institutions. Pitaloka emphasized that such institutions, which often shoulder significant social and educational responsibilities, are typically exempt from PBB under existing legal frameworks. Her call to the Finance Minister underscores a perceived disconnect between national policy and its local execution, threatening the financial stability and operational continuity of vital community assets.
"Suddenly, someone from the Regional Revenue Agency came demanding tax payments. Kang Purbaya, please, Kang Purbaya!" Rieke exclaimed in the video, visibly upset by the situation. She asserted that Pesantren Al-Fath Jalen, structured as a foundation, operates without profit motives, making the tax demand fundamentally contradictory to prevailing laws. "My brother’s foundation doesn’t seek profit. How dare they demand taxes? We will resolve this according to legal customs," she stated firmly, signaling a robust defense of the pesantren’s rights.
Pitaloka specifically referenced Article 38 of the Property Tax and Land regulations, which stipulates that PBB is not applicable to land and buildings used solely for public interest in religious, social, health, educational, and national cultural fields, provided they are not intended for profit. "Pesantren have taken over the responsibilities of the state. Such matters should certainly not be happening," she argued, stressing the invaluable contribution of these institutions to national development and social welfare.
The Plight of Pesantren Al-Fath Jalen: A Decade of Misinformation and Mounting Pressure
The administrators of Pesantren Al-Fath Jalen shed light on the convoluted chronology of their tax predicament. Naili, a key administrator, recounted that since the initial processing of the pesantren’s wakaf (religious endowment) certificate around 2010, they had been under the impression that the institution was exempt from PBB. This understanding, Naili explained, stemmed directly from assurances provided by officials at the Office of Religious Affairs (KUA) during the complex and costly wakaf certification process.
"Around 2010, we handled the wakaf certificate process at the KUA. It was a long and expensive process. At that time, the KUA informed us that pesantren were exempt from PBB. As laypeople, we simply trusted that information," Naili shared during an interview with Rieke Diah Pitaloka. This initial guidance, though seemingly authoritative, laid the groundwork for a decade of operational assumptions that would later be challenged by official tax demands.
The situation took a distressing turn in 2024 when Pesantren Al-Fath Jalen began receiving formal tax bills. The initial shock escalated into genuine alarm in 2025, when the pesantren received a letter threatening a "police line"—a term often used to signify seizure or closure for non-compliance. "In 2025, we received a letter stating that our pesantren would be ‘police-lined.’ I cried, honestly. Not long after that, Abah [Kiai Yasin] passed away," Naili recounted, highlighting the immense emotional and psychological toll these demands had taken on the community, particularly on the late founder. The timing of these threats, coinciding with the passing of the pesantren’s beloved founder, added a layer of profound grief and urgency to their struggle.
Local Support and Systemic Challenges
Adding weight to Pitaloka’s arguments, Nyumarno, a Member of the Regional House of Representatives (DPRD) for Bekasi Regency, who was also present during the visit, corroborated the legal standing of pesantren exemptions. Nyumarno confirmed that local regulations in Bekasi Regency indeed provide for tax exemptions for non-commercial places of worship and educational institutions.
"In Bekasi Regency, there is already a regulation stating that non-commercial places of worship or pondok pesantren can apply for PBB exemption," Nyumarno stated. However, he also acknowledged a significant gap between policy and practice. "But in practice, there are indeed bills that arrive without prior socialization. For Pesantren Al-Fath, I will personally accompany them to ensure they are exempted from PBB," he pledged, offering concrete support to resolve the immediate crisis for Al-Fath Jalen. Nyumarno’s statement underscores a broader administrative challenge where local revenue collection efforts may not always align with established exemptions, often due to a lack of proper communication, updated databases, or coordinated procedures between various government agencies.
The Role and Significance of Pesantren in Indonesia
To fully grasp the implications of this incident, it is crucial to understand the profound role of pesantren in Indonesia. Pesantren, traditional Islamic boarding schools, are not merely educational institutions; they are pillars of community, moral development, and often economic hubs in rural areas. With an estimated tens of thousands of pesantren across the archipelago, they serve as vital centers for religious education, character building, and social services, often reaching underserved populations.
Historically, pesantren have played a critical role in Indonesia’s independence struggle and continue to contribute significantly to national unity and religious moderation. They often operate on a non-profit basis, relying on community donations, wakaf endowments, and modest student fees. The concept of wakaf—an Islamic endowment made by an individual or a group for charitable or religious purposes—is central to the financial sustainability of many pesantren. Land and buildings acquired through wakaf are intended for perpetual use in serving the community, making their taxation a contentious issue, especially when the legal framework explicitly provides for exemptions.
The services provided by pesantren extend beyond religious instruction to include general education, vocational training, healthcare, and social welfare programs, often alleviating the burden on state-provided services. By offering affordable education and accommodation, particularly to students from lower-income families, pesantren contribute significantly to social mobility and poverty reduction. Therefore, any financial pressure, such as an unwarranted tax bill, can severely hamper their ability to continue these critical functions, potentially impacting thousands of students and countless communities.
Understanding Property Tax (PBB) in Indonesia and Its Exemptions
Property Tax and Land (PBB) in Indonesia is a direct tax levied on the ownership, control, and/or utilization of land and/or buildings. It is a crucial source of revenue for local governments (provincial and regency/city levels) to fund public services and development programs. The legal basis for PBB is primarily regulated by Law No. 12 of 1985 concerning Property Tax and Land, as amended by Law No. 12 of 1994, and further refined by Law No. 28 of 2009 concerning Local Taxes and Regional Levies (Pajak Daerah dan Retribusi Daerah – PDRD), which transferred PBB collection authority to local governments.
A key provision in the PBB framework is the exemption for certain types of properties. Article 38 (as referenced by Rieke Diah Pitaloka) of the PBB regulations, and similar provisions within the broader tax laws, are designed to protect institutions that serve the public good without commercial intent. These exemptions typically apply to:
- Land and buildings used for religious worship (e.g., mosques, churches, temples, monasteries).
- Land and buildings used for social purposes (e.g., orphanages, elderly care homes).
- Land and buildings used for health services (e.g., non-profit hospitals, clinics).
- Land and buildings used for educational purposes (e.g., non-profit schools, universities, and crucially, pesantren).
- Land and buildings used for national cultural purposes.
The crucial caveat for these exemptions is the "non-profit" clause. Institutions must demonstrate that their primary objective is public service, not generating financial gain for owners or shareholders. The challenge often lies in the bureaucratic process of applying for and maintaining these exemptions, and ensuring that local revenue agencies have up-to-date and accurate information regarding the status of such properties.
Broader Implications and Calls for Policy Review
The case of Pesantren Al-Fath Jalen is not an isolated incident. Similar issues concerning property tax demands on non-profit religious and educational institutions have surfaced in various regions across Indonesia. This recurrence points to potential systemic issues, including:
- Lack of Coordinated Data: Discrepancies in data sharing between different government agencies (e.g., KUA, Land Office, Regional Revenue Agencies) can lead to properties that are legally exempt being erroneously flagged for taxation.
- Insufficient Socialization: Many administrators of non-profit institutions, especially in remote areas, may not be fully aware of the procedures for applying for or renewing tax exemptions, or of their rights under the law.
- Bureaucratic Hurdles: The process of proving non-profit status and securing exemptions can be complex, requiring extensive documentation and multiple agency interactions, which can be daunting for community-run institutions with limited administrative capacity.
- Revenue Pressure: Local governments, facing pressure to meet revenue targets, might sometimes overlook or be less proactive in applying exemptions, especially if the non-profit status is not clearly and proactively asserted by the institution.
The emotional outcry from Rieke Diah Pitaloka and the public attention generated by her video serve as a critical catalyst for a broader review of how PBB exemptions are managed for non-profit institutions. The incident highlights the need for:
- Enhanced Inter-Agency Coordination: Establishing robust data-sharing protocols and joint verification mechanisms between KUA, Land Offices, and Regional Revenue Agencies to ensure accurate records of wakaf properties and non-profit entities.
- Streamlined Exemption Procedures: Simplifying the application and renewal processes for PBB exemptions, making them more accessible and less burdensome for pesantren and other eligible institutions.
- Proactive Socialization and Assistance: Government agencies should actively educate and assist non-profit organizations in understanding their tax rights and fulfilling necessary administrative requirements.
- Policy Clarification: A comprehensive circular or ministerial decree from the Ministry of Finance could re-emphasize and clarify the guidelines for PBB exemptions for religious and educational institutions, providing clear instructions to local revenue agencies nationwide.
Official Responses and the Path Forward
While the Ministry of Finance has not yet issued an official statement directly addressing Rieke Diah Pitaloka’s specific appeal regarding Pesantren Al-Fath Jalen, typically, the Ministry maintains a stance on upholding tax laws while also ensuring fairness and compliance. It is plausible that following such public attention, the Ministry would engage with local authorities in Bekasi to investigate the matter and ensure proper application of the law.
Regional Revenue Agencies (Bapenda) across Indonesia are tasked with collecting PBB in accordance with local regulations and national laws. In cases like Al-Fath Jalen, their response would likely involve reviewing the pesantren’s status, verifying its non-profit nature and wakaf certification, and assessing whether the exemption application process was duly followed or if there were administrative errors on their part. The pledge by DPRD Member Nyumarno to personally accompany Pesantren Al-Fath Jalen in its appeal process is a significant step, providing direct advocacy and expertise to navigate the local bureaucracy.
Legal experts in tax law emphasize that the burden of proof for non-profit status and eligibility for exemption often rests with the institution. However, they also stress the government’s responsibility to ensure that administrative processes are transparent, efficient, and do not inadvertently penalize organizations that are legally entitled to exemptions. This case serves as a powerful reminder that while the legal framework for PBB exemptions exists, its effective implementation requires continuous vigilance, clear communication, and a human-centered approach from all levels of government.
The resolution of the Pesantren Al-Fath Jalen case will set a precedent and send a clear message to other non-profit institutions facing similar challenges. It is a testament to the ongoing efforts to balance the state’s need for revenue with its commitment to supporting institutions that contribute immensely to the nation’s social, educational, and spiritual fabric. The incident underscores the importance of public oversight and the role of elected representatives like Rieke Diah Pitaloka in advocating for justice and ensuring that laws are applied equitably and justly. The expectation is that this public outcry will lead not only to the exemption of Pesantren Al-Fath Jalen but also to a broader reevaluation of PBB collection practices concerning non-profit organizations across Indonesia, fostering a more supportive environment for these invaluable community assets.
