Socio Today
Jakarta, VIVA – A recent incident involving a property tax bill issued to a non-profit Islamic boarding school, Pesantren Al-Fath Jalen in Tambun Utara, Bekasi Regency, has ignited a fervent response from Rieke Diah Pitaloka, a prominent member of Commission VI of the House of Representatives (DPR RI) from the PDI-P faction. The legislator publicly voiced her strong disapproval and emotional distress, directly appealing to Minister of Finance Purbaya Yudhi Sadewa (as per the date of the original report, October 22, 2025) to address what she considers a blatant disregard for existing legal exemptions for religious and educational institutions. This event underscores a critical issue regarding the application of tax laws to non-commercial entities and the potential for bureaucratic misinterpretations to impact vital social and educational infrastructure across Indonesia.
The Legislator’s Outcry and Legal Basis
Rieke Diah Pitaloka’s indignation was captured in a video widely circulated on her personal Instagram account, @riekediahp, under the banner "Viral for Justice" and the hashtag #SavePesantrenIndonesia. In the footage, filmed during her visit to Pesantren Al-Fath Jalen, she passionately recounted the arrival of local revenue officials demanding property tax payments. "Suddenly, someone from the Regional Revenue Agency came to collect tax. Kang Purbaya, please, Kang Purbaya," Rieke exclaimed, her voice laced with urgency and frustration.
Her primary contention rests on Article 38 of the prevailing regulations concerning Land and Building Tax (Pajak Bumi dan Bangunan or PBB), which explicitly exempts certain properties from taxation. This article stipulates that PBB does not apply to the ownership or utilization of land and buildings used solely for public interest in religious, social, health, educational, and national cultural fields, provided they are not intended for profit-seeking activities. Pesantren Al-Fath Jalen, a non-profit institution founded by the late Kiai Yasin, clearly falls under this protective clause, according to Rieke.
"My brother’s foundation is not profit-seeking. How dare they demand payment. We will resolve this through legal custom, of course," Rieke asserted firmly, emphasizing the non-commercial nature of the pesantren. She further articulated the profound societal role played by these institutions, stating, "Pesantrens have taken over the responsibility of the state. Things like this should certainly not happen." Her remarks highlight a fundamental principle: institutions that contribute significantly to public welfare, particularly in areas where state resources may be stretched, should ideally be supported, not burdened, by government policies.
A Chronology of Confusion: The Pesantren’s Ordeal
Naili, an administrator at Pesantren Al-Fath Jalen, provided a detailed account of the perplexing situation, shedding light on the chronology of events that led to the current predicament. She explained that since the initial processing of the waqf (religious endowment) certificate in 2010, the pesantren had operated under the assumption of PBB exemption. This understanding was based on explicit assurances from officials at the local Office of Religious Affairs (Kantor Urusan Agama or KUA).
"Around 2010, we went to the KUA to process the waqf certificate. It turned out that the process was lengthy and expensive. At that time, the KUA informed us that pesantrens were exempt from PBB. As laypeople, we simply believed them," Naili recounted during her interview with Rieke. This initial guidance established a critical precedent for the pesantren, shaping their financial planning and operational assumptions for over a decade.
However, this long-held understanding was shattered when the pesantren began receiving official tax demand letters in 2024. The situation escalated dramatically in 2025, when the pesantren received a more ominous notice. "In 2025, we received a letter stating that our pesantren would be ‘police-lined.’ I cried, frankly. Not long after that, Abah [Kiai Yasin] passed away," Naili shared, her voice heavy with emotion. The threat of legal enforcement, including the potential sealing off of the property, caused immense distress and coincided tragically with the passing of the pesantren’s revered founder. This timeline illustrates a distressing progression from initial assurance to severe legal threats, underscoring a clear breakdown in communication and policy implementation between various government bodies.
Local Government’s Acknowledgment and Commitment
Adding weight to Rieke’s and Naili’s claims, Nyumarno, a member of the Bekasi Regency Regional House of Representatives (DPRD Kabupaten Bekasi), who was also present during Rieke’s visit, confirmed the validity of the pesantren’s exemption claim. He affirmed that local regulations in Bekasi Regency indeed provide for tax exemptions for non-commercial religious and educational institutions.
"In Bekasi Regency, there are indeed regulations stating that places of worship or non-commercial Islamic boarding schools can apply for PBB exemption," Nyumarno explained. His statement corroborates the legal basis cited by Rieke and validates the pesantren’s expectation of exemption. However, he also highlighted a critical flaw in the practical application of these regulations. "But in practice, tax bills often arrive without prior socialization [of the exemption process]. For Pesantren Al-Fath, I will personally accompany them to ensure they are exempted from PBB," Nyumarno pledged, offering direct support to resolve the immediate issue. His commitment to intercede provides a glimmer of hope for Pesantren Al-Fath but also exposes a systemic problem of inadequate communication and implementation of tax policies at the local level.
The Broader Context: Pesantrens and State Responsibility
The incident at Pesantren Al-Fath Jalen is not an isolated event but rather indicative of a broader challenge faced by thousands of non-profit educational and religious institutions across Indonesia. Pesantrens, deeply rooted in Indonesian history and culture, serve as vital pillars of religious education, character building, and community development. According to data from the Ministry of Religious Affairs, there are over 28,000 active pesantrens nationwide, educating millions of students from diverse socio-economic backgrounds. Many of these institutions operate on waqf land or through community donations, often providing education and accommodation at minimal or no cost.
Historically, pesantrens have played a crucial role in national development, not only by fostering religious literacy but also by contributing to general education, vocational training, and social welfare programs, particularly in rural and underserved areas. Their non-profit status is central to their mission, enabling them to serve communities without the pressure of commercial viability. Therefore, the state has a vested interest and a moral obligation to support, or at least not impede, their operations. Rieke Diah Pitaloka’s argument that "Pesantrens have taken over the responsibility of the state" resonates deeply with this understanding, highlighting the symbiotic relationship between these institutions and national development goals.
Legal Framework for Tax Exemption: PBB and Waqf
The legal framework for PBB in Indonesia is governed primarily by Law No. 12 of 1985 on Land and Building Tax, as amended by Law No. 12 of 1994, and subsequently integrated into Law No. 28 of 2009 on Regional Taxes and Retributions. While the central government sets the general framework, the collection and administration of PBB for rural and urban sectors (PBB-P2) have largely been decentralized to regional governments.
Article 38 (or equivalent provisions in regional regulations, as referenced by Rieke) is crucial here. It typically outlines exemptions for properties used for public interest without commercial intent. Specifically, properties used for places of worship, social foundations, hospitals, schools, and cultural sites are often cited as examples. The waqf status of Pesantren Al-Fath Jalen is particularly relevant. Waqf is an Islamic endowment made by an individual or a group for charitable or religious purposes, typically involving donating a building, land, or other assets for Muslim religious or charitable uses. Legally, waqf property is generally considered inalienable and held in perpetuity for the specified charitable purpose, further reinforcing its non-commercial nature and eligibility for tax exemption. The discrepancy arises when local tax authorities, perhaps due to a lack of clear guidelines or insufficient coordination with KUA, fail to recognize or properly process these exemptions.
Potential Implications and Policy Review
This incident carries significant implications beyond Pesantren Al-Fath Jalen. It raises concerns about the potential for similar cases across Indonesia, where other non-profit religious and educational institutions might be unfairly burdened with tax demands. Such demands can severely strain the already limited financial resources of these institutions, potentially jeopardizing their ability to provide essential services.
The call for intervention from the Minister of Finance, Purbaya Yudhi Sadewa, emphasizes the need for a comprehensive review of the implementation of PBB regulations concerning non-profit entities. This review should ideally involve multiple stakeholders:
- Ministry of Finance: To ensure uniform understanding and application of national tax laws across all regional tax agencies.
- Ministry of Religious Affairs: To provide clearer guidance to KUA offices regarding the tax-exempt status of waqf properties and religious institutions.
- Local Revenue Agencies (Badan Pendapatan Daerah – Bapenda): To improve internal training, enhance communication channels with institutions, and ensure robust socialization of exemption procedures.
- DPR RI and DPRD: To oversee the implementation of laws and advocate for their constituents, particularly vulnerable non-profit organizations.
Improved inter-agency coordination is paramount to prevent such misunderstandings and ensure that the spirit of the law, which aims to support public interest institutions, is upheld in practice. Without clear guidelines and effective communication, the bureaucratic process can inadvertently penalize institutions that are actively contributing to the nation’s social capital.
Calls for Clarity and Action
The incident serves as a stark reminder of the challenges that can arise from administrative inconsistencies and a lack of clear communication between government bodies and the public they serve. The emotional outcry from Rieke Diah Pitaloka, combined with the detailed account from Pesantren Al-Fath Jalen’s administrator and the supportive stance of the local DPRD member, collectively underscore an urgent need for action.
What is required is not merely a resolution for Pesantren Al-Fath Jalen, but a systemic review and clarification of policies to prevent similar occurrences nationwide. This would involve:
- Public Awareness Campaigns: Educating non-profit institutions about their rights and the procedures for applying for tax exemptions.
- Inter-Agency Workshops: Bringing together officials from the Ministry of Finance, Ministry of Religious Affairs, and local Bapenda offices to standardize interpretations and implementation protocols.
- Simplified Exemption Processes: Streamlining the application and approval process for tax exemptions for eligible institutions.
- Digitalization of Records: Creating a centralized, accessible database of registered non-profit and waqf properties that are legally exempt from PBB.
Conclusion
The controversy surrounding Pesantren Al-Fath Jalen’s property tax bill highlights a critical fault line in the administrative landscape of Indonesia. While the legal framework for exempting non-profit religious and educational institutions from PBB exists, its practical application is often fraught with challenges. Rieke Diah Pitaloka’s passionate intervention brings much-needed attention to this issue, emphasizing the state’s responsibility to support, rather than burden, institutions that are vital to the nation’s social and educational fabric. The incident serves as a powerful call to action for policymakers to enhance clarity, improve coordination, and ensure that bureaucratic procedures do not inadvertently undermine the invaluable contributions of Indonesia’s numerous pesantrens and other non-profit organizations. The resolution of this case, and the broader policy adjustments it may catalyze, will be crucial in demonstrating the government’s commitment to fostering an environment where these essential institutions can thrive without undue financial strain.
