Jakarta, Indonesia — In a moment of high tension captured on video and widely circulated across social media platforms, Member of Parliament (DPR RI) Rieke Diah Pitaloka from the Indonesian Democratic Party of Struggle (PDI-P) expressed profound indignation upon discovering that a local Islamic boarding school, or pesantren, founded by the late Kiai Yasin, had been issued a formal demand for Pajak Bumi dan Bangunan (PBB), commonly known as the Land and Building Tax.
The incident unfolded during a field visit to Pesantren Al-Fath Jalen, located in Tambun Utara, Bekasi Regency. Visibly frustrated, Rieke utilized her personal Instagram account—under the handle @riekediahp and utilizing the campaign hashtag #SavePesantrenIndonesia—to broadcast the situation directly to the public and to call out high-ranking government officials. In the video, Rieke can be heard shouting a direct appeal to Finance Minister Purbaya Yudhi Sadewa, questioning the legality and ethical foundation of taxing a non-profit religious and educational institution.
"Suddenly, people from the Regional Revenue Agency come and demand taxes. Kang Purbaya, please, Kang Purbaya," Rieke stated firmly in the video clip. She argued vehemently that the imposition of property taxes on an institution dedicated to educating the public and preserving religious values contradicts both the spirit and the letter of Indonesian tax laws.
According to Rieke, the actions taken by local tax authorities violate existing statutory exemptions. She explicitly referenced Article 38 of the PBB regulations, which clearly outlines that land and building tax objects are exempt when the property is utilized solely for public interest purposes encompassing religious, social, health, national education, and cultural endeavors, provided that the entities in question are not operated for commercial gain or profit.
"This foundation does not seek profit. How dare they demand taxes? Well, we will resolve this through customary and legal means," Rieke added, emphasizing that pesantren essentially shoulder responsibilities that rightfully belong to the state by providing education and moral guidance to the community. "Pesantren have taken over state responsibilities. Situations like this certainly should not happen."
Chronology of the Dispute at Pesantren Al-Fath
The roots of the dispute trace back over a decade, according to Naili, an administrator at Pesantren Al-Fath who spoke directly with Rieke during her visit. Naili shared the institutional timeline, explaining that the school leadership had operated under the assumption that they were entirely exempt from land and property taxes based on official guidance received years prior.
Around 2010, the management of Pesantren Al-Fath visited the local Office of Religious Affairs (KUA) to process the formal land waqf (endowment) certificate. At the time, the administrative procedures were described as protracted and financially burdensome. During these consultations, local KUA officials allegedly informed the administrators that religious boarding schools were legally exempt from paying PBB.
Given their status as ordinary citizens trusting state representatives, the pesantren leadership accepted this information at face value and did not anticipate future administrative hurdles. For over a decade, the institution operated without facing property tax demands.
However, the situation deteriorated drastically beginning in 2024, when the school began receiving official notices regarding accumulated property tax arrears. The crisis peaked in early 2025 when administrators were confronted with an escalation notice threatening to place police line markers around the premises over unpaid tax liabilities.
"In 2025, we received a letter stating that our pesantren would be police-lined. I cried, frankly speaking. Not long after that, Abah passed away," Naili recounted, referring to the profound emotional distress experienced by the late Kiai Yasin prior to his passing.
Legislative Context and Local Government Oversight
Accompanying Rieke during the visit was Nyumarno, a member of the Bekasi Regency Regional House of Representatives (DPRD), who corroborated the legal exemptions protecting educational and religious facilities. Nyumarno confirmed that local regional regulations explicitly provide mechanisms to exempt non-commercial houses of worship and Islamic boarding schools from the obligation to pay PBB.
"In Bekasi Regency, regulations are already in place stipulating that houses of worship or non-commercial Islamic boarding schools can submit applications to be exempted from paying PBB," Nyumarno explained.
Nevertheless, Nyumarno acknowledged that systemic failures in administrative coordination and public outreach have led to recurring friction between taxpayers and regional revenue collectors. He noted that tax demands frequently arrive at institutional doorsteps without prior consultation, dialogue, or adequate socialization regarding administrative procedures.
Addressing the community’s concerns directly, Nyumarno committed to providing immediate institutional and legal assistance to Pesantren Al-Fath. "In practice, tax bills arrive without proper socialization. For Pesantren Al-Fath, I will directly assist them so that they are fully exempted from PBB," he stated.
Broader Implications for Religious and Educational Institutions in Indonesia
The controversy surrounding Pesantren Al-Fath has reignited a broader national dialogue regarding the intersection of regional revenue collection targets and the protection of non-profit educational and religious infrastructure across the archipelago. Islamic boarding schools have historically served as foundational pillars of community education, character development, and social welfare in Indonesia, often operating on minimal budgets reliant entirely on donations, community support, and waqf assets.
Under Indonesian law, non-profit educational institutions are theoretically shielded from various tax burdens to encourage public-private cooperation in human capital development. However, discrepancies between central statutory mandates and the execution of tax collection by local government bodies—such as Regional Revenue Agencies (Bapenda)—frequently result in administrative confusion. Local governments under pressure to meet regional revenue generation targets (Pendapatan Asli Daerah/PAD) occasionally issue broad tax assessments that inadvertently target exempt institutions due to outdated databases or lack of cross-agency coordination.
Tax policy experts note that incidents like the one at Pesantren Al-Fath highlight the urgent need for synchronized data systems between the Ministry of Finance, the Ministry of Religious Affairs, and regional revenue offices. Without proactive database integration and transparent exemption processes, institutions serving vulnerable or underserved populations remain susceptible to administrative overreach, causing unnecessary psychological distress to community leaders and educators.
As public scrutiny intensifies following Rieke Diah Pitaloka’s social media broadcast, pressure mounts on both regional authorities in Bekasi and national oversight bodies to review current property tax assessment protocols. The resolution of the Pesantren Al-Fath case is expected to serve as a critical precedent for thousands of similar religious and educational foundations nationwide seeking clarity and protection under existing tax exemption laws.
