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South Sulawesi Sets New Tax Revenue Record of Rp1 Trillion, Boosting Local Coffers

From Republika · (1d ago) Indonesian Positive tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • South Sulawesi's regional tax revenue, specifically from vehicle taxes (PKB) and name transfer fees (BBNKB), reached a record Rp1.048 trillion in 2025.
  • This significant increase, following the implementation of new central-regional financial regulations, bolsters the fiscal capacity of local governments.
  • Makassar received the largest share, approximately Rp393 billion, reflecting its strong economic activity and high vehicle ownership.

The province of South Sulawesi is celebrating a landmark achievement in its fiscal management, with regional tax revenues, particularly from vehicle ownership and transfers, soaring to an unprecedented Rp1.048 trillion in 2025. This figure, a direct result of the effective implementation of the 'opsen pajak' scheme under recent central-regional financial regulations, signifies a new era of strengthened fiscal capacity for the province's districts and cities.

This success is not merely about increased numbers; it represents a fundamental shift in how regional governments are funded. The opsen tax scheme, encompassing vehicle tax (PKB), name transfer fees (BBNKB), and taxes on non-metal and stone minerals (MBLB), has become a new cornerstone for revenue sharing between the provincial government and its constituent local governments. Previously, local revenue was heavily reliant on central transfers. Now, these regions have a larger stake in the revenue generated within their jurisdictions, incentivizing them to actively optimize tax collection.

Makassar, the provincial capital, stands out as the primary beneficiary, receiving approximately Rp393 billion. This substantial allocation underscores the city's vibrant economic activity and its high density of vehicle ownership, reinforcing its role as the economic engine of South Sulawesi. The Secretary of the Provincial Government, Jufri Rahman, emphasized that this achievement is a strong indicator of the opsen tax policy's success in significantly boosting regional income. He further noted that beyond expanding fiscal space, the scheme also accelerates the transformation of public services through digital means, highlighting a forward-looking approach to governance.

This year, 2026, is the second year of implementing regional tax opsen, and the results are already starting to be significant.

— Jufri RahmanSecretary of the Provincial Government of South Sulawesi, commenting on the impact of the opsen tax scheme.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.