Klojen (malangkota.go.id) – Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD Law) came into effect on January 5, 2024. Based on this law, boarding houses are no longer included in the definition of hotels and make rental houses or boarding houses no longer have the status of regional tax objects.
The existence of this regulation certainly has quite an impact, considering that as a City of Education, the contribution to Regional Original Income (PAD) from rental housing tax has the potential to reach IDR 8 billion.
Head of the Regional Revenue Agency (Bapenda) of Malang City, Handi Priyanto, when met on Tuesday (10/6/2025) revealed that before the HKPD Law, rental houses with a minimum of ten rooms were already subject to tax. "Since the law was enacted, we no longer collect rental house tax. So rental house owners are only subject to Land and Building Tax (PBB)," he explained.
Meanwhile, the Head of the Manpower, Investment and Integrated One-Stop Service (Disnaker PMPTSP) of Malang City, Arif Tri Sastyawan, said that the trend of boarding house businesses in Malang City is increasing and with facilities that are no less than hotels.
"Currently, many boarding houses in Malang City have complete facilities. Starting from an en-suite bathroom, air conditioning, and TV. Even the number of rooms is more than 30 in one building," he explained.
Arif confirmed that previously rental housing businesses with more than ten rooms were taxed, but now they can no longer be taxed because central regulations do not allow it. "There is no legal basis at the center, so it cannot be included in the Regional Tax and Regional Retribution Regulation (PDRD) of Malang City," he explained.
Arif also emphasized that even though the tax on rental houses or boarding houses has great potential, the Malang City Government will still comply and follow the regulations from the center. (say/yn)
