balipropertyguideUU HKPD (Law 1/2022) in English: the property tax articles
One long statute about central and regional finance; a few of its articles are the whole national frame for Bali property tax. Here they are, with the regional by-laws they hand the numbers to.
Law 1/2022, the property articles in order
Law 1/2022 is a long statute about how money moves between Jakarta and the regions. A handful of its articles are the whole national frame for property tax in Bali: the three taxes a buyer or owner meets, their ceilings, their bases and when they fall due. The rest of the law is not about property.
| Article | What it decides | Used on |
|---|---|---|
| Law 1/2022 art. 4(2) | Regencies and cities collect PBB-P2, BPHTB and PBJT, among others. | areas of Bali |
| Law 1/2022 art. 1(36) | NJOP is the average price from arm's-length sales. | costs and taxes |
| Law 1/2022 art. 38(1) | PBB-P2 is charged on land and buildings owned, controlled or used by a person or entity. | annual tax |
| Law 1/2022 art. 40(3) | The tax-free NJOP is at least IDR 10 million per taxpayer. | annual tax |
| Law 1/2022 art. 40(5) | The PBB base is between 20% and 100% of NJOP. | annual tax |
| Law 1/2022 art. 41(1) | The PBB-P2 rate may not exceed 0.5%. | annual tax |
| Law 1/2022 art. 44(2) | BPHTB is charged on acquisitions by sale, exchange, gift, bequest, inheritance, contribution to a company, auction, court order, mergers, and the grant of a new right. | taxes on a sale |
| Law 1/2022 art. 44(3) | The rights BPHTB reaches: hak milik, HGU, HGB, hak pakai, strata title and hak pengelolaan. | taxes on a sale |
| Law 1/2022 art. 46(2)(a) | The BPHTB base for a sale is the transaction price. | taxes on a sale |
| Law 1/2022 art. 46(5) | The tax-free acquisition value is at least IDR 80 million. | taxes on a sale |
| Law 1/2022 art. 46(6) | For inheritance within the family, at least IDR 300 million. | inheritance |
| Law 1/2022 art. 47(1) | The BPHTB rate may not exceed 5%. | costs and taxes |
| Law 1/2022 art. 49(a) | For a sale, BPHTB falls due on the date the PPJB is signed. | PPJB vs AJB |
| Law 1/2022 art. 53(1) | Hotel services include villas, and private residences used as a hotel. | villa rental tax |
| Law 1/2022 art. 56 | For PBJT, the guest bears it; the operator making the sale is the taxpayer. | villa rental tax |
| Law 1/2022 art. 57(1) | The PBJT base is the amount paid by the guest. | villa rental tax |
| Law 1/2022 art. 58(1) | The PBJT rate may not exceed 10%. | villa rental tax |
Why every Bali tax figure is regional
The law assigns PBB-P2, BPHTB and PBJT, among others to regencies and cities (Law 1/2022 (HKPD) art. 4(2)), then sets ceilings and floors and hands the operative rate to each region’s by-law. That single design choice is why a Denpasar figure is not a Badung figure, and why this site publishes rates only for the two by-laws it has read. Which regency sets what.
The annual tax (arts. 38–41)
Charged on land and buildings owned, controlled or used by a person or entity (Law 1/2022 (HKPD) art. 38(1)) — the test is ownership, control or use, which is how a lessee can end up liable. The tax-free NJOP is at least IDR 10 million per taxpayer (Law 1/2022 (HKPD) art. 40(3)); the base is between 20% and 100% of NJOP after it; the rate is capped at 0.5%, with a lower rate required for food and livestock land (art. 41(2)).
The acquisition duty (arts. 44–49)
Charged on acquisitions by sale, exchange, gift, bequest, inheritance, contribution to a company, auction, court order, mergers, and the grant of a new right (Law 1/2022 (HKPD) art. 44(2)), over hak milik, HGU, HGB, hak pakai, strata title and hak pengelolaan — so a foreigner acquiring hak pakai pays it too. Capped at 5%; due for a sale on the date the PPJB is signed (Law 1/2022 (HKPD) art. 49(a)).
The hotel-services tax (arts. 50–58)
Hotel services include villas, and private residences used as a hotel (Law 1/2022 (HKPD) art. 53(1)); the base is the amount paid by the guest; the rate is capped at 10%.
National floors against the two by-laws we have read
The law sets ceilings and floors; each regency then chooses. Put side by side, the choices show where the national figure is also the Bali figure, and where it is not.
| Item | Law 1/2022 | Kota Denpasar | Kabupaten Tabanan |
|---|---|---|---|
| BPHTB rate | at most 5% | 5% | 5% |
| Tax-free value, first acquisition | at least IDR 80 million | IDR 80 million | IDR 80 million |
| Tax-free value, family inheritance | at least IDR 300 million | IDR 700 million | IDR 3 billion |
| Tax-free NJOP for PBB | at least IDR 10 million per taxpayer | IDR 15 million | IDR 10 million |
| PBB rate | at most 0.5% | 0.1% on NJOP up to IDR 1 billion, 0.2% above it | 0.1% on NJOP up to IDR 1 billion, 0.2% above it |
| PBJT on hotel services | at most 10% | 10% | 10% |
Three patterns. On the ordinary purchase both regions took the national numbers unchanged — the ceiling for the rate, the floor for the relief. On inheritance both went well above the floor (Denpasar Perda 5/2023 art. 12(5); Tabanan Perda 13/2023 art. 12(5)), and Denpasar goes further still, with a 0% rate for a child or spouse (Denpasar Perda 5/2023 art. 13(2)). On the annual tax both set rates at a fraction of the 0.5% ceiling. None of this is visible from the national law alone, which is why a Bali figure quoted without its by-law is not a figure.
Timing follows the national law: for a sale BPHTB falls due on the date the PPJB is signed (Law 1/2022 (HKPD) art. 49(a)); for other transfers, on the date of the deed; for inheritance, when the heir registers the transfer.
What the national law leaves to Bali
The rates, the tax-free amounts above the floors, the NJOP values and the percentage of NJOP used for the annual tax are all regional. For Denpasar and Tabanan we have read the by-laws; for Badung and Gianyar we have not been able to. The two by-laws, side by side. Every instrument, by number.
This is commentary, not a translation, and not tax advice. We quote the operative words of the articles we cite; the official Indonesian text on JDIH BPK is the authority.
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Questions on this page
What is UU HKPD?
Law 1/2022 on Financial Relations between the Central Government and Regional Governments (Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah). For property it is the law behind the three regional taxes: annual land and building tax (PBB-P2), acquisition duty (BPHTB) and the tax on hotel services (PBJT).
What are the property tax ceilings under Law 1/2022?
PBB-P2 at most 0.5% (art. 41(1)); BPHTB at most 5% (art. 47(1)); PBJT on hotel services at most 10% (art. 58(1)). Each regency or city sets its actual rate by by-law within the ceiling.
When is BPHTB due under the HKPD law?
For a sale, on the date the PPJB is signed (art. 49(a)). For other transfers, on the date of the deed; for inheritance, when the heir registers the transfer.
Is there a tax-free amount for PBB under Law 1/2022?
Yes: a tax-free NJOP of at least IDR 10 million per taxpayer, given on one object per region per year (art. 40(3)-(4)). The taxable base is then 20% to 100% of NJOP after that deduction (art. 40(5)).
Sources cited on this page
Every rule above was read in the Indonesian original on 20 September 2026, not from an English summary. How we check this.