The KTP expiration date should match your KITAP expiration, so on first KITAP you should get a KTP with 5 years validity. Then, when you extend you KITAP you get a lifetime KITAP, and your new KTP should be issued for life (just as WNI get).
I am skeptical there is actually a local regulation imposing fees, but even if there is, they must follow national law and issue the KTP for the length of the stay permit, they can't make you come back for a new one every year.
Undang-Undang (highest level law) No. 24 Tahun 2013
Perubahan atas Undang-Undang Nomor 23 Tahun 2006 tentang Administrasi Kependudukan
peraturan.bpk.go.id
Pasal 64, Ayat 7:
Translated; For Foreigners the validity period is adjusted to the validity period of the Permanent Stay Permit.