Final Report on the Study of Potential Identification and Strategies for Increasing Local Revenue in North Kalimantan Province

The North Kalimantan Provincial Revenue Agency has published its latest report on the potential and strategies for increasing Local Own-Source Revenue (PAD). This study outlines opportunities for optimizing local taxes, levies, and contributions from regionally-owned enterprises (BUMD) to strengthen regional fiscal independence. Supported by the SKALA Program, this study found that North Kalimantan’s PAD is still relatively low, with a PAD to GRDP ratio of only 0.67% in 2023. However, with the right strategy, PAD is projected to increase by nearly 47.5% in 2027, mainly through the optimization of motor vehicle and fuel taxes, as well as the implementation of new taxes, such as Heavy Equipment Tax. This report recommends strategic steps, ranging from digitizing the taxation system, strengthening regulations, to increasing institutional capacity. These recommendations are expected to serve as a policy reference to strengthen North Kalimantan’s fiscal independence while improving the quality of public services. The document is only available in Bahasa Indonesia.