Batam City’s financial performance showed robust momentum through the first half of 2026, pulling in IDR 2.022 trillion by the end of June. This figure marks 48.34% of the overarching regional revenue target set at IDR 4.184 trillion, or roughly 47.04% against the broader IDR 4.3 trillion municipal budget baseline.
“This achievement was supported primarily by regional tax revenue, particularly from the property, consumer goods, and tourism sectors, which showed a positive growth trend throughout the first six months of this year,” said the Head of the Batam City Regional Revenue Agency, Raja Arzamansyah, on Thursday (July 23).
Within the framework of Regional Original Revenue (PAD), municipal taxes are slated to yield IDR 2.09 trillion across 2026. At the midpoint of the year, the Land and Building Acquisition Tax (BPHTB) stands as the primary engine, generating IDR 288.17 billion—representing 54.66% of its IDR 527.18 billion objective.
Electricity tax under the Certain Goods and Services Tax (PBJT) follows as the runner‑up contributor, bringing in IDR 197.95 billion, which accounts for approximately 45.25% of its IDR 437.42 billion projection.
Meanwhile, hospitality and dining sectors displayed the most aggressive upward trajectories. Restaurant tax collections surged by 22.46%, while hotel levies expanded by 32.9% relative to the preceding year’s metrics.
Raja pointed out that these gains stem directly from a revitalized tourism landscape alongside the heightened deployment of digital tapping boxes designed to streamline transaction reporting.
“This condition indicates that economic activity, particularly in the service and tourism sectors, continues to move positively, thus having a direct impact on regional tax revenues,” he added.
Batam’s overall PAD also outperformed previous benchmarks. Mid‑year realization climbed to IDR 1.262 trillion, eclipsing the IDR 1.060 trillion recorded during the corresponding window in 2025.
Year‑on‑year calculations point to a 19.05% expansion in municipal revenue, mirroring a strengthening local fiscal capacity as Batam’s economy rebounds.
Fiscal Stimulus and Digital Reforms Boost Compliance
According to Raja, several factors contributed to this increase. First, Batam’s economic growth, which is around 7 percent, has stimulated business activity and increased taxpayer compliance.
Complementing this growth is a targeted municipal fiscal stimulus. The administration rolled out a principal tax discount initiative paired with penalty waivers—slashing Urban and Rural Land and Building Tax (PBB‑P2) liabilities by up to 70% between April and June 2026.
“This policy is considered to encourage the public to be more active in fulfilling their tax obligations,” he said.
Additionally, ongoing digital overhauls in administrative services and rigorous taxpayer database updates have broadened the tax collection net while sharpening data precision.
Despite these gains, performance has lagged in select categories. Advertising levies, Non‑Metallic Minerals and Rocks taxes, and parking fees all sit below their designated mid‑year milestones.
Raja conceded that maximizing municipal collection faces lingering hurdles, noting that shifting economic currents, weather disruptions, and volatile commercial cycles continue to dampen output in isolated niches.
To counter this, authorities are aggressively auditing tax objects and entities to unearth untapped fiscal potential.
“Therefore, we continue to strengthen coordination with all stakeholders, improve the quality of service to taxpayers, and optimize the use of digital technology to support increased regional tax revenue,” said Raja.
Sources : BatamPos
Feat Image : via Shutterstock//Nuttsue
