Badung Regent Highlights Untapped Regional Tax Potential from Thousands of Licensed Businesses
MANGUPURA - The Regent of Badung has recently drawn attention to regional taxes that have yet to be collected by the local government. Data from the Online Single Submission (OSS) system shows that between 2020 and 2025, of the 40,060 business licences issued, only 10,467 businesses hold a Regional Taxpayer Identification Number (NPWPD) and Regional Tax Object Number (NOPD).
Due to the low absorption rate, the Badung Regent has taken the initiative to ensure that every business holding a licence is properly registered and contributing to regional coffers. The administration plans to establish a Regional Revenue Optimisation Team involving cross-sector participation, tasked with cataloguing tax potential based on business licensing data integrated with the OSS system.
In response, the Head of Badung's Regional Revenue Agency (Bapenda), Ni Putu Sukarini, said on Sunday 22 June 2025 that a team had already been deployed to improve accuracy and effectiveness in the field.
"The team has been equipped with the Regional Revenue Optimisation Information System (SIOPD), which enables digital tracking of business locations based on licensing data," she said.
She stated that increasing locally generated revenue (PAD) must remain an ongoing priority to support development programmes and strategic regional activities. She emphasised the importance of collaboration across all levels of government, from regional agencies, sub-district heads, and village heads to neighbourhood leaders, in identifying existing potential.
"However, not all business licences can automatically be subject to regional tax. There are subjective and objective requirements that must be met," she said.
Sukarini explained that subjective requirements cover business ownership and responsibility, whether individual or corporate. Meanwhile, objective requirements refer to the types of businesses that constitute tax objects, such as hotels, villas, tourist lodgings, resorts, food services, entertainment, and parking.
"Another concern is the validity and operational continuity of businesses that hold licences, particularly those affected by the Covid-19 pandemic from 2020 to 2023. Many tourism businesses in Badung ceased operations or even closed permanently during that period," she explained.
To protect small business operators, Sukarini said the Badung Regency Government, through Regional Regulation Number 7 of 2023, has established a tax exemption policy for food and beverage businesses with monthly turnover below Rp10 million. This represents a show of support for micro and small enterprises amid the economic recovery.
Due to the low absorption rate, the Badung Regent has taken the initiative to ensure that every business holding a licence is properly registered and contributing to regional coffers. The administration plans to establish a Regional Revenue Optimisation Team involving cross-sector participation, tasked with cataloguing tax potential based on business licensing data integrated with the OSS system.
In response, the Head of Badung's Regional Revenue Agency (Bapenda), Ni Putu Sukarini, said on Sunday 22 June 2025 that a team had already been deployed to improve accuracy and effectiveness in the field.
"The team has been equipped with the Regional Revenue Optimisation Information System (SIOPD), which enables digital tracking of business locations based on licensing data," she said.
She stated that increasing locally generated revenue (PAD) must remain an ongoing priority to support development programmes and strategic regional activities. She emphasised the importance of collaboration across all levels of government, from regional agencies, sub-district heads, and village heads to neighbourhood leaders, in identifying existing potential.
"However, not all business licences can automatically be subject to regional tax. There are subjective and objective requirements that must be met," she said.
Sukarini explained that subjective requirements cover business ownership and responsibility, whether individual or corporate. Meanwhile, objective requirements refer to the types of businesses that constitute tax objects, such as hotels, villas, tourist lodgings, resorts, food services, entertainment, and parking.
"Another concern is the validity and operational continuity of businesses that hold licences, particularly those affected by the Covid-19 pandemic from 2020 to 2023. Many tourism businesses in Badung ceased operations or even closed permanently during that period," she explained.
To protect small business operators, Sukarini said the Badung Regency Government, through Regional Regulation Number 7 of 2023, has established a tax exemption policy for food and beverage businesses with monthly turnover below Rp10 million. This represents a show of support for micro and small enterprises amid the economic recovery.