Tax Revenue Declines in Several Regions as of January

JAKARTA. Tax revenue realization throughout January 2025 contracted in several regions, according to data released by multiple Regional Tax Offices of the Directorate General of Taxes (Kanwil DGT).

Among the Regional Tax Offices that have published their tax revenue figures are East Java, North Sumatra, Papua and West Papua, Lampung, East Kalimantan, North Kalimantan, and Bengkulu.

In general, tax revenue performance in these regions is influenced by several factors, such as changes in tax policies and regional economic developments.

1. East Java Regional Office

The East Java DGT Regional Office reported tax revenue realization of IDR 19.05 trillion as of January 31, 2025, marking a 2.7% contraction compared to 2024. The revenue collected by the East Java Tax Offices accounts for 6.31% of the 2025 target.

This decline is attributed to two main factors. First, the centralization of tax payment and administration for branch taxpayers. Second, the suboptimal implementation of the Coretax system, which has disrupted tax administration processes in East Java.

2. Papua and West Papua Regional Office

The Papua and West Papua DGT Regional Office reported that tax revenue in the region reached only IDR 485.59 billion, reflecting a 41.27% decline compared to the same period in 2024 (year-on-year).

Similar to East Java, one of the reasons for this contraction is the transition to a new tax system. As a result, the Papua and West Papua Regional Office considers the contraction to reflect a stable performance.

3. Lampung

Another region experiencing contraction is Lampung. As of the end of January 2025, tax revenue realization in Lampung stood at IDR 377.08 billion, marking a 21.42% year-on-year (YoY) decline.

According to Bloombergtechnoz.com, tax revenue in the Lampung Tax Office comprised Value-Added Tax (VAT) at IDR 225.9 billion, Income Tax at IDR 135.4 billion, and Land and Building Tax at IDR 5 million.

4. East Kalimantan and North Kalimantan

Meanwhile, tax revenue from the East Kalimantan and North Kalimantan Tax Offices recorded positive growth of 23.4% YoY, reaching IDR 2.01 trillion.

The largest portion of revenue came from non-oil and gas Income Tax, amounting to IDR 1.06 trillion. Additionally, Land and Building Tax contributed IDR 0.05 trillion, while other taxes accounted for IDR 0.03 trillion.

5. Bengkulu

Bengkulu also experienced positive growth. As of January 31, 2025, tax revenue in the Bengkulu Tax Office grew 11%, reaching IDR 149.07 billion.

This revenue consisted of VAT (IDR 95.04 billion), Income Tax (IDR 52.4 billion), Land and Building Tax (IDR 548.9 million), and other taxes (IDR 1.06 billion). The Bengkulu Regional Office's data-driven tax supervision largely contributed to this performance.

6. North Sumatra

Meanwhile, the North Sumatra Regional Office reported tax revenue realization of IDR 1.43 trillion as of January 31, 2025, accounting for 4.41% of the target.

This tax revenue was primarily driven by VAT (IDR 359.33 billion), Income Tax Article 21 (IDR 243 billion), and Import VAT (IDR 359.33 billion). (ASP/KEN)