Jakarta DPRD Urges Optimisation of BLUD Levies to Boost Local Revenue

Jakarta’s Regional Legislative Council (DPRD) is pushing for the optimisation of Pendapatan Asli Daerah (PAD) through higher receipts from the Regional Public Service Bodies (BLUD) in the form of levies. The move would strengthen the governance of services, raise service quality for the public, and ensure that potential levies are managed transparently and accountably.

BLUDs across sectors such as health, education, and other public services are considered to have considerable potential to contribute to PAD. Therefore, professional management based on performance is expected to raise regional revenue while continuing to maintain service quality for the public.

Through its audit function, Commission C of the Jakarta DPRD sees opportunities to increase PAD from these sectors. Preparations should be made early to prevent declines in revenue that could affect the fiscal capacity to implement development programs.

Secretary of Commission C, Ismail, stressed the importance of synchronisation by the Regional Government Budget Team (TAPD) to set more realistic and measurable targets for regional revenue.

According to Ismail, increases in levies are an urgent necessity to close the shortfall caused by a cut in transfer funds from the central government to the region, amounting to around Rp15 trillion.

‘Raising levies is a must to close the gap,’ Ismail said.

As a concrete step, Commission C proposed clustering the 103 BLUDs within the DKI Jakarta provincial government. The grouping aims to map the potential of each service unit so that strengthening strategies can be targeted more precisely.

‘With clustering, it will show which units form the backbone, which have growth potential, and which focus on service delivery,’ he explained.

In addition, the DPRD also urges the Jakarta provincial government to explore new revenue sources. This should be accompanied by accelerating the drafting of a legal umbrella, whether through a regional regulation (Perda) or a gubernatorial regulation (Pergub).

‘We want the development programme in the RPJMD to remain progressive and not experience regress,’ Ismail concluded.