Medan City regional revenue optimization

The Medan City Government has initiated efforts to optimize regional original income (PAD) through increased tax supervision and regulatory updates. The Regional Revenue Agency (Bapenda) conducted field inspections of the nightlife sector to ensure business activities align with reported tax data and to prevent revenue leakage. Concurrently, Mayor Rico Waas proposed amendments to local tax and retribution regulations, focusing on expanding the tax base and improving compliance through digitalization rather than solely raising rates.

Following these initiatives, Medan was recognized with an award in the Regional Digitalization Acceleration and Expansion Team (TP2DD) category. This achievement was attributed to the implementation of digital tools such as ‘smart tax’ and ‘Qresto’ (Quick Response Electronic Splitting System For Tax Optimization), which have integrated local tax management into a digital ecosystem. The administration has supported this digital transformation through Mayor Regulations to improve financial governance, transparency, and accountability.