Waste levy an opportunity for DKI to boost revenue from taxes

The Jakarta Provincial Government is considered to still have opportunities to increase revenue sourced from regional taxes, one of which is through waste levies. “For example, waste levies. The regional regulation is already in place and has been effective since last year. This could actually be one of the efforts to strengthen the potential of original local revenue (PAD) in the DKI region,” said the Director of Regional Financing and Economy (P2D) at the Ministry of Finance, Adriyanto, in Jakarta on Thursday. Referring to estimates made by the Ministry of Finance, Adriyanto said there is still a gap between Jakarta’s tax potential and its realisation. “Our estimates calculate that up to 2024, the potential is nearly around Rp55 trillion. But the realisation is only around Rp50 trillion, meaning there is still a gap there,” he said. Adriyanto also highlighted the DKI tax ratio, which has declined since 2023 from 1.26 percent and slowed in 2024 to 1.21 percent. This figure has also continued to decrease in 2025, which according to preliminary data stands at 1.03 percent. “The comparison of PAD to GRDP (Gross Regional Domestic Product) in DKI shows a trend of decline. I think this also needs special attention, particularly from the regional revenue handling agency,” he said. He then asked the Jakarta Provincial Government to explore local tax potentials, for example by expanding the economic base or creating larger economic movements so that local tax potential can be collected more substantially.