Jakarta DPRD Pushes for Regional Revenue Management Reform Through Digitalization

The Jakarta Regional People's Representative Council (DPRD) is advocating for a significant overhaul of local revenue management, emphasizing digitalization and the creation of a fiscal reform roadmap. This initiative is deemed essential for bolstering the region's original revenue (PAD) while simultaneously enhancing the transparency and accountability of its financial operations.

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The Golkar Party faction proposes the development of a Regional Revenue Reform Roadmap for 2026-2030, Regulatory Impact Analysis (RIA) before changes, and regional tax expenditure rates submitted alongside the APBD realization as a form of transparency and accountability in regional fiscal management.

During discussions on a draft regional regulation amending the existing law on regional taxes and levies, Syafi Djohan, a member of the Golkar Party faction in the DPRD, proposed the development of a Regional Revenue Reform Roadmap for 2026-2030. He also called for Regulatory Impact Analysis (RIA) before any regulatory changes and for tax expenditure rates to be disclosed alongside the regional budget realization reports, ensuring greater fiscal transparency and accountability.

Djohan stressed that strengthening PAD requires a digitally integrated transformation. This digitalization should encompass the entire tax administration process, from identifying taxable objects and validating taxpayer data to analyzing compliance, monitoring transactions, and evaluating policies. He asserted that all these aspects must be digitized to reinforce PAD.

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Digital transformation must encompass the entire tax administration process, from identifying taxable objects, validating taxpayer data, analyzing compliance, monitoring transactions to policy evaluation. All of this must be directed towards a digital and data basis for strengthening PAD.

Jakarta's Deputy Governor, Rano Karno, acknowledged the DPRD's input, stating that the proposed amendments to Regional Regulation No. 1 of 2024 aim to strengthen legal certainty, fairness, and the overall governance of taxes and levies, making them more transparent, accountable, and adaptive. He welcomed the suggestions from all DPRD factions, noting they will be crucial in refining the regulations for better tax and levy management in the region.

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The executive welcomes the suggestions and opinions expressed by all factions regarding this draft regulation. Various inputs will become an important part of refining the regulations to achieve better governance of regional taxation and levies.