Koster urges Bali agencies to accelerate PAD collections to meet 2026 target

Denpasar — Bali Governor Wayan Koster has urged provincial agencies to step up efforts to increase locally generated revenue (Pendapatan Asli Daerah/PAD) after Bali collected around Rp2.5 trillion by mid-August 2026, or just under 60% of the province’s 2026 PAD target of about Rp4.24 trillion, according to the provincial revenue agency and local media reports.

The appeal was delivered at a coordination meeting on the evaluation and optimisation of PAD for the 2026 financial year in Denpasar. During the meeting, Koster asked heads of provincial organisations (OPD) to work more innovatively and intensify collection efforts to support development programmes that require stronger budget backing.

Head of the Bali Regional Revenue Agency (Bapenda) I Dewa Tagel Wirasa reported that PAD realisation up to 14 August 2026 reached Rp2,499,175,145,467, equivalent to 58.95% of the main PAD target of Rp4,239,252,167,568 set for the year. The revenue is dominated by regional taxes, followed by service charges, returns from separately managed regional assets and other lawful local income.

Agencies pushed to boost performance

PAD is one of the key components of Bali’s regional budget and a major indicator of the province’s fiscal independence. According to Koster, relying only on PAD — which he has previously put at around Rp4.5 trillion — is not sufficient to finance large-scale infrastructure and other public services, making it necessary to strengthen both local revenue and external funding.

In the August coordination meeting, Koster called on OPD leaders to maximise existing revenue sources and develop new, creative approaches to increase PAD, particularly through better service quality and more professional management of public services that have commercial potential. He framed improved PAD performance as essential to sustaining Bali’s development agenda.

The governor’s instructions built on an earlier agreement in April 2026, when provincial officials decided to raise the PAD targets assigned to PAD-generating agencies by around 10%. The mid-August realisation figures showed Bali had passed the halfway mark of the revised target, but Koster warned that stronger efforts were needed in the remaining months of the year.

Structure of Bali’s local revenue

According to the Bali Regional Revenue Agency, the province’s PAD is derived from four main categories: regional taxes, regional service charges (retribusi), returns from separately managed regional assets and other lawful local income. Regional taxes remain the largest contributor to PAD, supported by income from charges and asset management.

Separate evaluations carried out by the Bali office of the Financial and Development Supervisory Agency (BPKP) in 2026 have also highlighted the central role of regional taxes in PAD and recommended strategic measures to increase tax effectiveness and strengthen Bali’s fiscal independence. These recommendations are aimed at helping the provincial government optimise its tax base and improve collection systems.

At the budget level, Koster has outlined plans to increase projected PAD in the draft amended 2026 regional budget by more than Rp120 billion, from around Rp4.2 trillion to Rp4.3 trillion, alongside a rise in overall provincial revenue from Rp6.5 trillion to Rp6.6 trillion. The push to accelerate PAD realisation in August sits within this broader effort to expand the provincial revenue base.

Key figures reported

• 2026 PAD main target: approximately Rp4.239 trillion.
• PAD collected as of 14 August 2026: Rp2.499 trillion.
• Realisation rate by 14 August 2026: 58.95% of the annual PAD target.
• Indicative increase in agency-level PAD targets agreed in April 2026: around 10%.

Koster’s call for more innovative and intensive work from provincial agencies reflects concern that current trends, while broadly on track, may not be sufficient to comfortably reach the higher PAD target set for 2026. Strengthening local revenue is seen as crucial to funding infrastructure, tourism development and other public services in the province.

Sources

• RRI Denpasar – "Gubernur Koster Genjot OPD Kerja Maksimal Tingkatkan PAD"
• Detik Bali – "PAD Bali Baru Rp 2,4 T, Koster Minta OPD Lebih Inovatif"
• BPKP Bali – "BPKP Bali Sampaikan Hasil Evaluasi Optimalisasi Pendapatan Asli Daerah Provinsi Bali Tahun 2026"
• The Bali Sun – "Bali Governor Calls For More Investment In Tourism Infrastructure Development"