Regional Budget 2027 Discussion Emphasizes Optimizing Regional Revenue Through Levies

Member of Commission C of the Jakarta Regional People's Representative Council (DPRD), August Hamonangan, appreciated a number of Regional Apparatus Organizations (OPD) that increased regional revenue targets in the discussion of the General Policy of the Regional Budget and Temporary Budget Ceiling Priorities (KUA-PPAS) for the 2027 Fiscal Year.

Source of local revenue

According to August, the increase in revenue targets from the regional tax and retribution sector is a positive signal in efforts to strengthen Regional Original Income (PAD).

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"After we pushed for increased revenue from the start, several SKPDs agreed to increase their levy and tax targets," he said, Thursday (7/30).

One example is the Jakarta Industry, Trade, Cooperatives, and Small and Medium Enterprises (PPKUKM) Agency, which has proposed a 15 percent increase in its revenue target. This increase will come from levies on Temporary Locations (Loksem), Assisted Locations (Lokbin), and trade kiosks.

August appreciated the proposal. However, he cautioned that the target increase shouldn't just be a figure on paper. Achieving the levy target is highly dependent on the city government issuing a decree (SK) extending the Loksem area.

He added that up to now, only the North Jakarta City Government has issued a decree extending the Loksem area. Therefore, August urged all mayors to immediately issue similar policies to ensure the established levy targets can be realized.

August also emphasized the importance of protecting MSMEs. He stated that regional planning must continue to accommodate MSMEs so that public space and community economic activity can coexist.

August also commended the Jakarta Human Resources Development Agency (BPSDM) for increasing its revenue target by around Rp 50 million through optimizing its human resource training and development programs.

He also highlighted on the proposed electric vehicle policy, which is considered to have the potential to increase local revenue (PAD). Currently, August continued, the Jakarta Provincial Government is still awaiting approval from the Ministry of Home Affairs for the proposed scheme.

"If this policy is approved, it is hoped it will become an additional source of local revenue. While it won't cover all needs, it will at least help reduce dependence on regional bonds," he stated.