Pekanbaru's Mayor's Smart Strategy to Boost Local Revenue

Amid fiscal pressures and budget efficiency policies, the Pekanbaru City Government has successfully recorded a significant increase in local own-source revenue (PAD) through various breakthroughs and innovations. Pekanbaru Mayor Agung Nugroho stated that efforts to boost PAD began with improving the quality of services to the public, particularly taxpayers, to make the tax payment process easier and less cumbersome. Another breakthrough is providing ease and discounts on property tax (PBB) payments. This has proven effective, as the public has become more eager to pay taxes, resulting in a drastic increase compared to the same period in the previous year. Agung also urged the Investment and One-Stop Integrated Services Agency (DPMPTSP) to simplify and accelerate permit issuance. “For example, the building permit approval tax (PBG). If permits are simplified and expedited, people will certainly be enthusiastic about applying. This year, residents have been compliant in paying taxes; the key is to maximise services so that the public does not feel reluctant to pay,” said Agung in Pekanbaru on Friday, 24 April 2026. In addition, they have increased taxes on motor vehicles, advertisements, hotels, restaurants, and other taxes. Pekanbaru’s city PAD has risen dramatically since Agung’s leadership. “Our PAD has seen a quite significant increase. Compared to the same period, it rose drastically in 2025 from Rp800 billion to Rp1.2 trillion,” said Agung. Most importantly, according to Agung, the taxes paid must be felt by the public. One of them is the improvement of several road sections and public facilities that have long been public complaints. “Taxes must also be felt by the public. That’s why there are road improvements, infrastructure, public facilities, and cleanliness, all of which can be directly felt by the public. The public certainly wants the taxes they pay to be felt by them.”