Sumatra North and South Indonesian provinces boost PAD collection and refine 2026‑27 budgets

In North Sumatra, the provincial government and the regional DPRD held a work visit to the Pependa office in Binjai to review progress toward the 2026 local revenue (PAD) target. The visit highlighted that vehicle tax (PKB) reached 34.9% of its Rp64.2 billion goal, name‑transfer tax (BBNKB) 39.7% of Rp40.2 billion, while surface water tax (PAP) exceeded its target at 108.5%. Officials discussed service innovations such as evening and weekend tax‑office hours and direct collection from large defaulters, and DPRD members urged greater transparency on government vehicle taxes and tighter monitoring of heavy‑equipment transactions.

In South Sumatra, Governor Herman Deru addressed the upcoming 2027 regional budget, noting that the province expects a central‑government transfer cut of about Rp1.8 trillion compared with 2026. The administration plans to maintain spending quality by prioritising essential infrastructure maintenance, rationalising operational costs, and expanding PAD to reduce reliance on central funds. Provincial officials emphasized that public services must continue uninterrupted despite fiscal tightening, and they will await further guidance from the Ministry of Finance.