Semarang Named Indonesia's Most Fiscally Independent City, Earns 'Transformer City' Title

The city of Semarang has been designated a national Transformer City by the Ministry of Home Affairs after recording the highest level of fiscal independence among all municipal governments in Indonesia. Based on the ministry’s assessment for the 2022–2026 period, the average ratio of locally generated revenue (PAD) to total revenue for Semarang City reached 63.26 per cent. Semarang Mayor Agustina Wilujeng said the achievement is proof of increasingly robust regional financial management and serves as important capital for maintaining the sustainability of development. ‘The greater the region’s ability to finance its own needs, the wider the space for the government to deliver services and development that are felt by the community,’ Agustina said on Friday (3/7). Over the past five years, regional revenue realisation increased from Rp4.82 trillion in 2021 to Rp5.83 trillion in 2025. PAD also rose from Rp2.39 trillion to Rp3.44 trillion, whilst local tax receipts grew from Rp1.45 trillion to Rp2.74 trillion. As of 3 July 2026, local tax realisation had reached Rp1.485 trillion, or 45.27 per cent of the Rp3.280 trillion target. According to Agustina, the increase was achieved through the digitalisation of tax services, data updating, improved taxpayer compliance, and more accountable governance without burdening the public or business actors. The Transformer City title, she continued, is recognition of the Semarang City Government’s consistency in strengthening regional fiscal capacity so that development can continue to be financed independently and its benefits felt directly by the community.