ibnchannel.id – The Governor of Bali, Wayan Koster, delivered his response to the General Views of the Factions regarding the Draft Regional Regulation (Raperda) on the Amendment to the Bali Provincial Planned Universe Regional Budget (APBD Semesta Berencana) for Fiscal Year 2025.
The response was delivered on Soma Umanis-Bala, Monday (28/7), at the Wiswa Sabha Utama Building, Denpasar. Koster outlined several public interest program priorities, such as regional revenue and the implementation of lighter tax rates.
He also highlighted the increase in regional spending focused on public services such as the Trans Metro Dewata bus service, optimization of the Foreign Tourist Levy (PWA), maintaining regional financial balance, and developing priority infrastructure to address traffic congestion, waste management, and land-use conversion.
Governor Koster explained that regarding Regional Revenue, the calculation of the Regional Original Revenue (PAD) target in the 2025 Budget Amendment Raperda had taken into account the potential revenue based on real-time and historical realizations, in accordance with prevailing laws and regulations.
The potential for increased regional tax revenue comes with the implementation of Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments. This law mandates a 66% allocation of PKB (Motor Vehicle Tax) and BBNKB (Vehicle Ownership Transfer Fee) shares to regencies/cities, along with the Circular Letter from the Minister of Home Affairs No. 900.1.13.1/6764/SJ dated December 20, 2024, which instructs local governments to provide tax relief or reductions to ensure taxpayers’ burdens are equivalent to those in the previous year. This will potentially result in a 39.73% decrease in tax rates when comparing the rates between 2024 and 2025.
As for the reduction in revenue from physical DAK (Special Allocation Fund) transfers, it is not an obstacle because the expenditures have been reallocated from regional funding sources.
“As for the target revenue from the Foreign Tourist Levy (PWA), we are continuously optimizing efforts through renewed cooperation with relevant parties according to the schemes set out in the amended regulation on Foreign Tourist Levy,” he emphasized.
Regarding the council’s views/questions on Regional Expenditure, Governor Wayan Koster explained that the increase in Operational Expenditure of more than IDR 500 billion compared to the 2024 fiscal realization is due to adjustments in regional development policy directions and the Asta Cita program in accordance with Circular Letter of the Minister of Home Affairs No. 900.1.1/640/SJ.
The decrease in Unexpected Expenditures has accounted for the remainder of the fiscal year and possible emergencies, while the allocation of Tax Revenue Sharing Expenditures for each regency/city includes the 2024 Tax Revenue Sharing obligations that must be fulfilled.
He further explained that the budget allocation for the Trans Metro Dewata service in the 2025 APBD Amendment Raperda, amounting to more than IDR 57 billion, covers the operational costs of the Trans Metro Dewata (TMD) bus service across six corridors, funded through a cost-sharing scheme between the Bali Provincial Government and the governments of Badung Regency, Gianyar Regency, and Denpasar City.
The reduction in budget allocations for several Regional Apparatus Organizations (OPD) is a follow-up to the expenditure efficiency policy as per Presidential Instruction No. 1 of 2025.
Meanwhile, improvements to irrigation channels will be programmed in stages with cost-sharing according to each level of government’s authority.
Programs and activities funded by the Foreign Tourist Levy have been aligned with the relevant regional regulation, and a fund-source tagging system has been applied in the APBD to ensure proper fund allocation.
Governor Koster also addressed Regional Financing, stating that the proposed regional loan of IDR 347.15 billion is a strategy to achieve fiscal balance in the face of very high spending needs and insufficient revenue levels.
This strategy is unrelated to institutional or individual performance assessments. For inputs and suggestions beyond the scope of the Raperda, particularly regarding the polemic on the Majelis Desa Adat (Customary Village Assembly), Governor Koster urged all council members to manage differences in opinion wisely and seek appropriate solutions without engaging in public polemics that could negatively impact the existence of customary villages.
Regarding the suggestions and feedback from factions concerning road damage repairs, traffic congestion, waste management, infrastructure development in North Bali, development of traditional markets, control of modern/chain stores, spatial planning (RTRW), and development aligned with the Land Use Change Control Plan for agricultural land—all of these have been designated as priority programs for the 2025–2030 period and will be implemented gradually.
Infrastructure that falls under the authority of the Central Government will be coordinated with the relevant ministries.
As for non-ASN (non-civil servant) personnel who have not yet been appointed as PPPK (Government Employees with Work Agreements), their roles will continue to be utilized appropriately while awaiting policy direction from the Central Government.
“Considering the dynamic discussions on the 2025 APBD Amendment Raperda between the Council leadership and the Governor, between the DPRD Budget Committee (Banggar) and the Regional Budget Team (TAPD), as well as the need to accommodate national priority programs in the region, I will proceed with adjusting the posture of the 2025 APBD Amendment Draft,” concluded Governor Wayan Koster.***
