Riau Islands regional tax revenue targets at risk for 2026

The Riau Islands (Kepri) Regional House of Representatives (DPRD) has warned that the 2026 Regional Original Income (PAD) targets may not be met. As of the second semester of 2026, local tax revenue realization remains below 50 percent of the established target.

Rudi Chua, a member of Commission II of the DPRD Kepri, identified two primary factors contributing to the shortfall. First, a Ministry of Home Affairs circular issued in March 2026 requested that local governments cease collecting Motor Vehicle Tax (PKB) for electric vehicles. Second, Chua noted that a weakening economy has been a dominant factor suppressing tax receipts.

To address the deficit, Chua urged the Regional Revenue Agency (Bapenda) to evaluate the 2026 tax targets and implement strategic measures, such as encouraging owners of vehicles with out-of-province license plates to complete ownership transfer processes.