Indonesian Political, Business & Finance News

Ministry of Home Affairs Asks Regions to Prepare a Roadmap for Electronic Transactions

| | Source: REPUBLIKA | Politics

REPUBLIKA.CO.ID, JAKARTA — The Ministry of Home Affairs is encouraging regional governments to strengthen the implementation of Electronic Transactions for Regional Governments (ETPD) to increase transparency and optimise revenue. This effort is being carried out through the preparation of a roadmap and measurable action plan as a foundation for digital transformation of regional finances.

The Director of Regional Revenue at the Directorate General of Regional Financial Development of the Ministry of Home Affairs, Teguh Narutomo, said that the socialisation of these technical guidelines is a strategic step to ensure that the digitalisation of transactions runs effectively. “This activity is a strategic step to ensure that digital transformation in the regions runs in an organised, measurable, and sustainable manner to support the realisation of transparent, accountable, and participatory regional financial governance,” said Teguh during the Socialisation of Technical Guidelines for the Preparation of a Roadmap and Action Plan for the Implementation of Electronic Transactions for Regional Governments in Jakarta, Tuesday (24/2/2026), based on a press release received on Thursday (26/2/2026).

Teguh said that the implementation of ETPD is now entering its second period following the inauguration of regional heads and the preparation of the 2026 Regional Medium-Term Development Plan. This momentum is considered important to align regional development policies with the agenda of digitalising government transactions.

According to Teguh, the digitalisation of regional transactions is becoming increasingly important in the context of adjustments to transfers to regions in the 2026 fiscal year. “The digitalisation of regional transactions is very important in the context of adjustments to transfers to regions in the 2026 fiscal year, with a transfer of IDR 205.55 trillion or 23.04 per cent compared to the 2025 fiscal year. On the other hand, the realisation of Regional Original Revenue nationally has not been optimal. Regional Taxes were realised at IDR 271.32 trillion or 21.07 per cent and Regional Levies at IDR 64.20 trillion or 4.98 per cent, or overall only contributed 26.05 per cent to total regional revenue,” said Teguh.

This condition shows that there is still great potential to optimise regional revenue, especially from the levy sector. Teguh said that many regional levies, such as markets, parking, and tourist attractions, are still managed conventionally, making them vulnerable to leakage.

“Therefore, regional governments are encouraged to accelerate digitalisation, especially in the levy sector, such as markets, parking, and tourist attractions, which are still vulnerable to leakage,” Teguh emphasised.

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