NJOP
Also called: nilai jual objek pajak
The value of land and buildings set by the government as the basis for calculating PBB.
What it means
NJOP is the sale value of the tax object, which is the value set by the local government as the basis for imposing Land and Building Tax. Its value is determined through an assessment of land and buildings, usually updated periodically by the relevant agency. NJOP is stated in the Tax Due Notification Letter you receive every year. This figure is not the market price, although it is often used as a rough comparison.
Why it matters for families
NJOP affects how much PBB the family must pay each year, and is one of the bases for calculating BPHTB when buying or receiving property. If you think NJOP is the same as the selling price, you may miscalculate transaction costs and taxes. A large difference between NJOP and market price can also raise questions from tax officers during the transfer of rights.
Example
For example, the NJOP for land is Rp1,500,000 per meter and for buildings is Rp1,000,000 per meter for a land area of 100 meters and a building of 60 meters. The estimated total NJOP is about Rp210,000,000, and PBB is calculated from a certain percentage of that value according to regional regulations. This figure is only an illustration, not the official value in your location.
Common misunderstanding
Many people assume NJOP is the fair price of their house. Correction: NJOP is a value for local tax purposes, and can be lower or higher than the actual transaction price.