Indonesian Political, Business & Finance News

Golkar Faction in Jakarta DPRD Pushes for Regional Revenue Management Reform

| | Source: REPUBLIKA Translated from Indonesian | Economy
Golkar Faction in Jakarta DPRD Pushes for Regional Revenue Management Reform
Image: REPUBLIKA

The Jakarta Regional House of Representatives (DPRD) is pushing for reforms in regional revenue management through the digitalisation of tax administration and the drafting of a fiscal reform roadmap. The move is deemed necessary to strengthen locally generated revenue (PAD) while increasing the transparency and accountability of regional financial management. The proposal was put forward during discussions on the Draft Regional Regulation (Ranperda) concerning amendments to Regional Regulation No. 1 of 2024 on Regional Taxes and Levies. Syafi Djohan, a member of the Golkar Party faction in the Jakarta DPRD, stated that the regulatory changes should be used as momentum to overhaul regional revenue governance comprehensively. ‘The Golkar Party faction proposes the drafting of a Regional Revenue Reform roadmap for 2026-2030, a Regulatory Impact Analysis (RIA) prior to changes, and the submission of regional tax expenditure rates alongside the APBD realisation as a form of fiscal management transparency and accountability,’ Syafi said in a statement on Wednesday (15/7/2026). In addition to drafting the revenue reform roadmap, Syafi assessed that strengthening PAD must be supported by integrated digital transformation. According to him, digitalisation should not only be applied to the registration of tax objects but must also cover the entire tax administration process. ‘Digital transformation must encompass the entire tax administration process, from registering tax objects, validating taxpayer data, compliance analysis, and transaction monitoring to policy evaluation. All of this must be directed towards a digital and data-driven basis to strengthen PAD,’ Syafi stated. Meanwhile, Jakarta Deputy Governor Rano Karno said the amendment to Regional Regulation No. 1 of 2024 aims to strengthen legal certainty, fairness, and the governance of regional taxes and levies to be more transparent, accountable, and adaptive. Rano expressed appreciation for the input provided by all DPRD factions during the discussion of the draft bylaw. According to him, the various suggestions will serve as material for refining the regulation. ‘The executive welcomes the suggestions and opinions conveyed by all factions regarding this Ranperda. These inputs will be an important part of perfecting the regulation to realise better regional tax and levy governance,’ Rano said.

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