Indonesian Political, Business & Finance News

Pekanbaru City Government and Riau Provincial Government Collaborate to Recover Motor Vehicle Tax Arrears

| Source: TEMPO_ID Translated from Indonesian | Finance

The Pekancal City Government, in collaboration with the Riau Provincial Government, is working together to increase regional revenue through the collection of outstanding Motor Vehicle Tax (PKB) arrears. This move is regarded as a breakthrough to strengthen regional fiscal independence while simultaneously improving public compliance with taxation obligations.

“This is a form of cooperation between the Mayor of Pekanbaru and the Riau Provincial Government,” stated the Acting Governor of Riau, SF Hariyanto, at the Tenayan Raya Office Complex on Monday, 8 June 2026. The government apparatus within the Pekanbaru City Government is considered prepared to operate down to the local neighbourhood level.

The involvement of the Family Welfare Empowerment (PKK) cadres will serve as an additional strength in disseminating information regarding arrears for both Land and Building Tax (PBB-P2) and Motor Vehicle Tax (PKB) to the public. Furthermore, PKK cadres will assist in notifying taxpayers as a form of education and reminder to ensure the community remains compliant with their obligations.

“We hope all parties can work hard so that this information reaches the public and encourages them to return to being tax-compliant,” said SF Hariyanto.

The total PKB arrears targeted for collection in Pekanbaru City reaches approximately Rp 159 billion. Meanwhile, the number of vehicles recorded with tax arrears is estimated to be around 393,000 units.

With full support from the Pekanbaru City Government, the Acting Governor is optimistic that the collection target can be significantly achieved by the end of 2026. Moreover, this collaborative programme has the potential to serve as a model for other regencies and cities within Riau Province.

“We will later encourage other regions to follow suit. This is an excellent example. The Mayor, alongside the PKK, has demonstrated extraordinary steps,” said SF Hariyanto.

The Mayor of Pekanbaru, Agung Nugroho, expressed his appreciation for the strategic steps initiated by the Riau Provincial Government to increase Regional Original Income (PAD). The collaboration between the Provincial and City governments is seen as a concrete step in strengthening regional fiscal capacity and supporting sustainable development.

“We express our gratitude for the extraordinary steps taken by the Acting Governor of Riau. This is a concrete measure to seek PAD in order to realise regional fiscal independence,” he said.

The Pekanbaru City Government aims to collect at least 60 per cent of the total tax arrears by the end of this year. This target will be pursued through persuasive approaches, massive socialisation, and the involvement of various community elements down to the neighbourhood level. “Our target for this year is that at least 60 per cent of the arrears can be collected,” stated Mayor Agung.

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