Patching Fiscal Holes
Regional governments are scrambling to raise revenue. A more humane approach to tax collection can be more effective than relying on law enforcement.
The East Nusa Tenggara provincial government in Indonesia is struggling with a significant shortfall in its finances, with transfers to the regions falling by Rp292.8 billion and general allocation funds received by the province decreasing to Rp1.64 trillion. To address this issue, the government has implemented Governor's Regulation No. 13/2025, which aims to optimize vehicle and fuel taxes.
This regulation prohibits tax delinquents and vehicles registered outside the province from receiving subsidized fuel. The push for increased tax collection is crucial, as the province's salaries and allowances for civil servants require Rp1.82 trillion, leaving a shortfall of Rp181 billion.
Brief written by urgent.news from Tempo.co English's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
