Govt’s Calls for Comprehensive Tax Databases to Strengthen Fiscal Independence

Jakarta: The government has pushed for the development of accurate Regional Tax and Retribution (PDRD) databases to help increase locally generated revenue (PAD) and support sustainable development.
 
The Ministry of Home Affairs, through its Directorate General of Regional Financial Development, stated that data reliability is essential for developing accurate and realistic regional revenue projections in the Regional Revenue and Expenditure Budget (APBD).
 
Director of Regional Revenue at the Directorate General of Regional Financial Development, Teguh, called for local governments to map tax and levy potential based on actual conditions rather than estimates.
 
“This initiative will address the low regional tax ratio and alter the PDRD target-setting system, which had previously relied on estimates,” Teguh said in a press statement quoted on Sunday, June 22, 2026.

He added that a comprehensive database will not only help local governments identify existing revenue sources, but also uncover new opportunities.
 
Several challenges continue to hamper regional tax and levy management, including low taxpayer compliance, limited data integration, and inefficient management systems.
 
An integrated database is expected to help regional governments develop more effective and targeted revenue collection strategies.
 
“With a comprehensive and integrated database, regional governments will be able to easily identify tax and levy potential, and design more effective and efficient collection strategies,” remarked Teguh.
 
He added that strengthening locally generated revenue (PAD) is critical to the long-term sustainability of regional development. Stronger fiscal capacity would enable regional governments to implement development programs and public services more independently, without overreliance on central government funds.
 
In many regions, local revenue accounts for only a marginal share of the regional budgets (APBD) compared with central government funds. Optimizing tax and levy collection would help strengthen the regional financial foundation.
 
Teguh concluded the event by encouraging local governments to utilize discussion forums as a means to exchange experiences and identify solutions.
 
He stated, “Use these forums to find solutions so that regional tax and levy potential can be mapped effectively and used as a basis for the Regional Budget (APBD).”
 
The government hopes that better data management will help regions realize their full economic potential.
 
(Jonathan Sianto)