The West Java Provincial Government has ratified the Regional Revenue and Expenditure Budget (APBD) for the 2025 Fiscal Year which was ratified through West Java Provincial Regulation Number 14 of 2024 concerning the Regional Revenue and Expenditure Budget for the 2025 Fiscal Year which was then further elaborated in West Java Governor Regulation Number 30 of 2024 concerning the Elaboration of the Regional Revenue and Expenditure Budget for the 2025 Fiscal Year, with the volume of the APBD amounting to IDR 31.68 trillion.

The APBD posture is distributed in a balanced manner between regional income and regional expenditure as follows:

Priority Programs of West Java Province for Fiscal Year 2025

Regional Development of West Java Province in 2025 is implemented by:

1. Implementing priorities in accordance with the direction of development policies, including achieving the target of macro development indicators that have not been completed in 2024, strengthening the economy of West Java after the impact of the COVID-19 pandemic, resolving comprehensive issues such as poverty and stunting, and resolving strategic issues and regional issues;

2. ensure consistency of priority planning and budgeting and priority targets for provincial development with a program-based budgeting approach ( money follows program ), as well as priority programs to be implemented in 2025;

3. collaboration between various funding sources, including district/city funding (district/city APBD), provincial APBD, APBN, CSR, KPBU, regional bonds, community/religious funds, and grants, to finance the expenditure of each regional apparatus; and

4. actively involve stakeholders outside the government in the planning and implementation of regional development, by applying spatial concepts in the elaboration of regional development priorities.

The West Java Provincial Government's spending allocation for the 2025 Fiscal Year is allocated proportionally and fairly to outline and implement the development targets of West Java as stated in the 2024-2026 RPD, including:

Priority 1, namely Economic Growth Based on Increasing the Capacity of MSMEs, Farmers, Fishermen and Cultivators to Open Up Job Opportunities as Widely as Possible;

Priority 2, namely Education System Reform, Cultural Advancement, Religious Education and Religious Life;

Priority 3, namely Strengthening Regional Health Systems;

Priority 4, namely Strengthening the Social Protection System and Disaster Risk Management Preparedness;

Priority 5, namely Development of Regional Connectivity Infrastructure and Environmental Management as well as Village Development Movement;

Priority 6, namely Public Service Innovation and Regional Planning.

The six priority programs are supported by 7 (seven) main affairs managed by regional apparatus, including:

1. General Government Affairs

2. Supporting Affairs of Government Affairs

3. Supervision of Government Affairs

4. Supporting Affairs of Government Affairs

5. Elective Government Affairs

6. Mandatory Government Affairs relating to Basic Services, and

7. Mandatory Government Affairs that are not related to Basic Services.

The direction of West Java's economic development in the 2025 Fiscal Year is achieved through the following strategies and policy directions:

1. Increasing production and product differentiation in the agriculture, forestry, maritime and fisheries sectors.

2. Development of sustainable food security.

3. Increasing the competitiveness of industrial and trade products.

4. Increasing innovation and quality of investment, transforming the expansion of employment opportunities.

5. Increasing tourism competitiveness.

To support the achievement of priority programs and the direction of development policies, there are several regional income and regional spending policies that are taken, including:

A. Optimization of Regional Revenue Management, implemented through:

1. TAX AWARENESS , an effort to increase community participation in development through tax obligations in all structures and levels of society. Activities carried out focus on:

a. Strengthening and drafting of tax and levy regulations, both in the form of Regional Regulations and Governor Regulations, especially harmonization with Law Number 1 of 2022 concerning Central and Regional Financial Relations;

b. Socialization of income policies at the central and regional levels, by optimizing various socialization media that are most effective in the field, including social media, videotron, push notifications and direct socialization based on collaborative activities with all levels of society.

2. NEW SAMBARA, an effort to provide web-based and android/ios online samsat services for urban areas and mobile samsat services and channeling for rural areas. Activities carried out focus on:

a. Implementation of New Sambara with electronic Approval;

b. Digitalization of Samsat services, especially in expanding payment transaction channels .

3. NEW SIPANDU, Efforts to manage data and analysis-insight of regional taxes with platform -based revenue and artificial intelligence . Activities carried out focus on:

a. Implementation of Virtual Accounts in the Regional Revenue Payment Service System of West Java Province;

b. New SSOS (Samsat Service System) is fully integrated with Electronic Registration and Identification (ERI), a registration application from the Indonesian National Police.

B. Optimization of Public Service Quality, implemented through:

1. TAX CENTER , an effort to bring communication closer between the government and taxpayers in the form of tax consultation services, complaints, tracking and tax publications based on communication technology. Activities carried out focus on:

a. Operationalization of Sim-C ( Samsat Information Center ) with 24-hour service activation on number 150410, and chatbot -based service on number 081122301818;

b. Development of HR competencies for Tax Services and Functions in line with Bureaucratic Reform efforts in the regions.

2. TAX APPRECIATION , an effort to provide awards to taxpayers who are compliant on a massive scale so that they become role models for the community. Activities carried out focus on:

a. Tax relaxation implemented selectively to encourage revenue-increasing policies at the central and regional levels;

b. Implementation of exhibition events in collaboration with all regional revenue stakeholders ;

c. The Philotra Award from the Governor of West Java to exemplary taxpayers in West Java.

3. TAX DATA INTEGRATION , Collaborative efforts of West Java Province with the center, districts/cities and local tax stakeholders in managing taxpayer data, tax information systems and joint analysis and supervision. Activities carried out focus on data integration, including: Motor Vehicle data with the Traffic Corps of the National Police Headquarters, population data with the Directorate General of Population and Civil Registration of the Ministry of Home Affairs, taxpayer data with the Directorate General of Fiscal Balance of the Ministry of Finance, taxpayer mobile phone owner data with operators, and so on.

In addition, in general the West Java Provincial Government continues to make other effective efforts to increase revenue, namely:

1. Optimization of dividends from Regionally-Owned Enterprises (BUMD).

2. Optimizing regional asset management in a professional manner.

3. Optimization of Domestic Personal Tax (PPh OPDN), PPh Article 21, export tax, and Corporate Income Tax.

4. Increase the accuracy of potential data, both tax potential and natural resource potential, as the basis for calculating profit sharing.

The strategy for achieving transfer revenue targets is carried out through:

a. Continuous socialization regarding income tax collection in an effort to increase public awareness in paying taxes.

b. Improving the accuracy of potential data, both tax potential and natural resource potential, in collaboration with the Directorate General of Taxes, Ministry of Finance as the basis for calculating Profit Sharing.

c. Increase the involvement of regional governments in calculating oil and gas lifting and calculating other natural resources in order to obtain a proportion of distribution that is in accordance with potential.

d. Improve coordination with the Ministry of Home Affairs, Ministry of Finance, Technical Ministries, Budget Agency of the Indonesian House of Representatives and the Indonesian Regional Representative Council to seek to increase the amount of Transfer Funds (DAU, DAK and Tax Revenue Sharing Funds/Non-Tax Revenue Sharing).

The optimal strategy for achieving Other Legitimate Income is achieved through:

a. Coordination with technical ministries and non-governmental institutions, both domestic and foreign.

b. Initiation and introduction of income sources from the community.

C. Regional spending policies are implemented by regulating accountable, proportional, efficient and effective spending patterns. The regional spending policies of West Java Province for the 2025 Fiscal Year are as follows:

1. Allocated for binding expenditures which are expenditures that are needed continuously and must be allocated by the Regional Government in sufficient amounts for the needs of each month in the relevant Fiscal Year including; ASN Salaries and Allowances; ASN BLUD Employee Salaries and Honorariums; Office Service Expenditures (Electricity, Water, Telephone/Internet); and Insurance Premium Expenditures;

2. Allocated for mandatory expenditure which is expenditure to ensure the continuity of basic public service funding, including education, health, carrying out obligations to third parties, obligations to pay principal on loans, interest on loans that have matured, and other obligations in accordance with laws and regulations;

3. Allocated to finance expenditure to fulfill Regional Goals and Targets and to fulfill the implementation of basic services, including:

a. Regional development priorities of West Java Province for 2024-2026 which are in line with the development priorities in the 2025 Government Work Plan (RKP);

b. Implementation of sustainable development goals or Sustainable Development Goals (SDGs);

c. Implementation of Minimum Service Standards (SPM) of provincial authority, covering 14 (fourteen) types of basic services, namely: secondary education; special education; health services for residents affected by health crises due to disasters and/or potential provincial disasters; health services for residents in extraordinary provincial events; fulfillment of bulk drinking water needs across districts/cities; provision of regional domestic wastewater treatment services across districts/cities; provision and rehabilitation of habitable houses for victims of provincial disasters; facilitation of provision of habitable houses for communities affected by relocation programs of provincial regional governments; provincial public order and security services; basic social rehabilitation of abandoned disabled people in institutions; basic social rehabilitation of abandoned children in institutions; basic social rehabilitation of abandoned elderly people in institutions; basic social rehabilitation of the socially disadvantaged, especially vagrants and beggars in institutions; and protection and social security during and after emergency response to disasters for victims of provincial disasters;

4. Funding for regional government affairs, the amount of which has been determined in accordance with statutory provisions, including:

a. The use of educational function funds is at least 20 (twenty) percent of the State Revenue and Expenditure Budget (APBN) and the Regional Revenue and Expenditure Budget (APBD) to meet the needs of organizing education;

b. use of health function funds in order to improve the health function of West Java Province consistently and continuously, financing is not only for health matters but also non-health matters which are health functions such as sports facilities and human resources;

c. allocation of public service infrastructure spending of at least 40 (forty) percent of the total APBD spending outside of revenue sharing spending and/or transfers to regions/villages. Public service infrastructure spending is regional infrastructure spending that is directly related to the acceleration of development and maintenance of public service facilities and the economy in order to increase employment opportunities, reduce poverty, and reduce public disparities between regions;

d. budget fulfillment for certain allocations that have been stipulated in laws and regulations and their implementing regulations, such as for increasing the capacity of human resources of civil servants and increasing the capacity of APIP.

5. Allocation of expenditure for the implementation of other government affairs to fund regional apparatus programs that are under the authority of the province, and are supporting programs for the implementation of office work, including:

a. Revitalization of Service Offices, Service Branch Offices/Centers/UPTD and certain Service Units whose conditions require rehabilitation and revitalization;

b. support for optimizing the use of regional assets;

c. encourage the optimization of Increasing the Use of Domestic Products (P3DN) in various government procurement of goods/services to improve the regional economy;

d. awarding Sports Awards to regional athletes;

e. support for West Java Province level sporting events in 2025;

f. support for the 2025 Southeast Asian Games; and

g. support to increase access to capital.

6. Allocation of funding for Financial Assistance and Grants is competitive and stimulates the emergence of innovative works that provide an accelerative effect on achieving strategic development targets for regional development that are increasingly felt by local communities.

(BPKAD of West Java Province)