InfoSAWIT, SAMPIT – The Chairman of the Kotawaringin Timur (Kotim) DPRD, Rimbun, urged that large private companies operating in Kotim without a Business Use Rights (HGU) should be promptly addressed. He stated that the absence of HGU hinders the increase of Regional Original Income (PAD), particularly from Land and Building Acquisition Tax (BPHTB).

“According to the plantation law No. 39, those holding an IUP or business license can only operate. However, our local challenge is that we cannot maximize PAD because they do not have HGU, thus BPHTB cannot be increased,” Rimbun stated, as quoted by InfoSAWIT from tabengan.co.id on Friday (February 28, 2025).

He revealed that out of 16 companies operating in Kotim without HGU, some have been in operation for decades. The potential BPHTB that the local government should receive could reach Rp 800 to Rp 900 billion.

“That is what we are asking the government, both at the district and central levels, to help resolve this issue. This is crucial for the region's interest in maximizing PAD,” he emphasized.

According to Rimbun, this situation results in losses for the region as it cannot optimize the PAD potential that should be the largest contributor to the regional treasury.

From the total of 16 companies, the BPHTB that should be received by the government is estimated to reach Rp 844.5 billion.

Rimbun hopes that the government will take concrete steps to regulate these companies to enhance PAD and improve the welfare of the Kotim community. (T2)