{"id":106,"date":"2025-04-05T08:00:02","date_gmt":"2025-04-05T01:00:02","guid":{"rendered":"https:\/\/pro-visioner.com\/pvk\/?p=106"},"modified":"2025-04-05T08:00:02","modified_gmt":"2025-04-05T01:00:02","slug":"optimizing-regional-revenue-through-the-hkpd-law","status":"publish","type":"post","link":"https:\/\/pro-visioner.com\/pvk\/optimizing-regional-revenue-through-the-hkpd-law\/","title":{"rendered":"Optimizing Regional Revenue through the HKPD Law"},"content":{"rendered":"\n

pro-visioner.com <\/a>– Optimizing Regional Revenue through the HKPD Law, There is an interesting space for regions that have large tax revenue potential, but the implementation of this law needs massive socialization.<\/p>\n\n\n\n

Majalahpajak.net – It seems that many people do not know that at the beginning of 2022, precisely on January 5, 2022, a new legal product was enacted, namely Law Number 1 of 2022 concerning Financial Relations between Central and Regional Governments, abbreviated as HKPD.<\/p>\n\n\n\n

Not many media highlighted this legal product. Discussion on the timeline is also very rare, is it possible that because this law only talks about the relationship between “husband and wife” in a family, namely the relationship between the central and regional governments in this country, the public may be reluctant to talk about it? As stated in the Preamble of the 1945 Constitution of the Republic of Indonesia, Article 18, the Unitary State of the Republic of Indonesia is divided into provinces, and the provinces are divided into regencies and cities. Each province, regency and city has its own government. The provincial, district and city governments have the right to regulate and manage their own government affairs according to the principles of autonomy and assistance tasks. Government affairs that are the responsibility of the region are carried out based on the principle of autonomy, while government affairs that are not the responsibility of the Regional Government are carried out based on the principle of deconcentration and assistance tasks.<\/p>\n\n\n\n

The implementation of government affairs from the central to the regional level is part of the government power vested in the President in accordance with the 1945 Constitution of the Republic of Indonesia so that it cannot run independently. This requires a synergy of funding for these affairs in order to achieve state goals. The division of the Unitary State of the Republic of Indonesia into provinces, regencies, and cities, and the division of Government Affairs between these governments give rise to authority and financial relationships.<\/p>\n\n\n\n

In accordance with the mandate of Article 18A paragraph (2) of the 1945 Constitution of the Republic of Indonesia, financial relations, public services, and utilization of natural resources and other resources between the Government and Regional Governments are regulated and implemented in a fair and harmonious manner based on the Law.<\/p>\n\n\n\n

To implement the mandate of Article 18A paragraph (2) of the 1945 Constitution of the Republic of Indonesia, a Law on Financial Relations between the Central Government and Regional Governments was drafted. The drafting of this Law is also based on the idea that it is necessary to improve the implementation of the Financial Relationship between the Central Government and Regional Governments, which has been carried out based on Law Number 33 of 2004 concerning Financial Balance between the Central Government and Regional Governments and Law Number 28 of 2009 concerning Regional Taxes and Regional Levies.<\/p>\n\n\n\n

The improvement of the implementation of financial relations between the central government and local governments is carried out as an effort to create an efficient allocation of national resources through financial relations between the central government and local governments that are transparent, accountable, and equitable, in order to realize equitable distribution of public services and improvement of community welfare in all corners of the Unitary State of the Republic of Indonesia. In realizing these objectives, the Financial Relationship between the Central Government and Local Governments is based on four main pillars, namely:<\/p>\n\n\n\n

Developing a tax system that supports the efficient allocation of national resources,
Developing financial relations between the central government and regional governments in minimizing vertical and horizontal inequality through TKD and Regional Debt Financing policies.
Encouraging the improvement of the quality of regional spending
Harmonizing fiscal policies between central and local governments for optimal public service delivery and maintaining fiscal sustainability.
Tax and levy system<\/p>\n\n\n\n

There are significant changes from Law No. 28\/2009 on Regional Taxes and Levies, namely the simplification or restructuring of many types of regional taxes and levies. Tax restructuring is done through the reclassification of five types of consumption-based taxes into one type of tax, namely PBJT (Specific Goods and Services Tax). This has the objective to<\/p>\n\n\n\n

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(i) harmonize tax objects between central and local taxes so as to avoid duplication of tax collection;<\/p>\n\n\n\n

(ii) simplify tax administration so that the benefits obtained are higher than the cost of collection;<\/p>\n\n\n\n

(iii) facilitate monitoring of integrated tax collection by the regions;<\/p>\n\n\n\n

(iv) making it easier for the public to fulfill their tax obligations, as well as supporting the ease of doing business by simplifying tax administration. In addition to the integration of consumption-based local taxes, PBJT regulates the expansion of tax objects such as valet parking, recreation objects, and rental of sports facilities and infrastructure (sports game objects).<\/p>\n\n\n\n

PBJT is a form of delegated VAT, therefore of course with this simplification it will be easier to supervise and regulate by the local government. If in the past it was popular with the terms Restaurant Tax, Hotel Tax, then with the new term all types of taxes are called PBJT consisting of<\/p>\n\n\n\n