Indonesian Political, Business & Finance News

Solo City Council Highlights Local Revenue Failure to Meet Targets

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Finance

The Regional People’s Representative Council (DPRD) of Solo City has once again highlighted the performance of Local Own-Source Revenue (PAD) in Solo, which has failed to meet targets in recent years. This criticism emerged during the plenary session of the Solo City DPRD, where the Mayor presented notes explaining the Accountability Statement Report (LKPJ) for the 2025 Fiscal Year on Tuesday, 31 March 2026.

Solo City DPRD Chairman Budi Prasetyo stated that the majority of factions in the DPRD provided critical notes on PAD achievements and budget absorption that have not been optimal. According to him, this situation requires serious attention from the city government to prevent it from recurring.

“Most factions highlighted the PAD achievement that is still below target. This is an important note because it has occurred in recent years,” Budi said when met by reporters after the plenary session.

He explained that the DPRD will form a special committee (Pansus) to discuss the LKPJ in more detail. The Pansus will work with relevant regional apparatus organisations (OPD) to identify obstacles and formulate strategic steps to increase regional revenue.

“The Pansus will delve into various aspects, including potentials that have not been optimally exploited. The results will be in the form of recommendations that must be followed up by the city government,” he said.

The DPRD hopes that through the discussion of the LKPJ and the work of the Pansus, the regional financial performance in the future can be more effective and able to meet the set targets. In addition, synergy between the legislature and executive is seen as key to driving sustainable PAD improvements.

Based on data in the 2025 LKPJ, the realisation of Solo City’s Local Own-Source Revenue reached Rp 2.22 trillion out of a target of Rp 2.23 trillion, or about 94.40%. Meanwhile, regional expenditure realisation was recorded at Rp 2.12 trillion out of a plan of Rp 2.34 trillion, or about 90.34%.

On the other hand, regional financing showed nearly perfect achievement. From a financing receipt target of Rp 109 billion, the realisation reached 99.95%.

In response, Solo Mayor Respati Ardi stated that the city government will undertake various optimisation efforts to increase PAD. One step to be taken is to strengthen the performance of the Regional Revenue Agency (Bapenda) and explore potential new revenue sources.

“We will optimise the performance of OPDs, especially Bapenda, so that PAD achievements can be more maximal. However, these efforts must still align with maintaining inflation stability and regional economic growth,” Respati said.

He added that the city government will also increase oversight of PAD-contributing sectors, including local taxes and levies, to ensure revenue potentials can be realised optimally.

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