Balikpapan Local Tax Arrears Are Being Paid in Installments

BALIKPAPAN — local tax arrears in Balikpapan are now being paid in installments by several taxpayers, according to the city’s Regional Tax and Retribution Management Agency (BPPDRD) in East Kalimantan on Sunday, June 28. BPPDRD chief Idham Mustari said several major tax types have already entered a staged payment process.

“Some of the larger tax categories have already made payments, some are paying in installments,” Idham said in Balikpapan, as quoted by ANTARA. He said the arrangement is valid as long as it follows the applicable regional bylaw and mayoral regulation.

The pattern matters for city cash flow. Money that comes in bit by bit still helps local government keep revenue moving, even when some businesses are recovering slowly. For taxpayers who had delayed payment, installments offer breathing room. For the city, it creates certainty that the debt is still being worked down.

Why Balikpapan local tax arrears can be paid in installments

Idham said BPPDRD does not shut the door on taxpayers facing cash-flow problems. The installment mechanism can be used as long as the administration is clear and the legal basis is in place. In practice, the policy is designed to keep compliance alive without breaking ties with business owners.

The approach also shows a more flexible way of handling local revenue. Not every arrears case can be settled at once. Some businesses are still recovering. Others need time to reorganize their books. Some must go through the formal receivables settlement process.

“The payment mechanism through installments is legal and allowed,” Idham said. He stressed that the policy refers to the relevant regional bylaw and mayoral regulation, while also considering the taxpayer’s financial condition.

For local government, the message is straightforward. The aim is not only to chase the numbers, but also to keep payments flowing without creating new friction with the business sector. Administrative route. Not a shortcut.

Old receivables are still large

On the total amount of local tax receivables, BPPDRD acknowledged that the figure remains large when viewed in the regional government’s financial reports. But the big number does not all come from new debt. Part of it dates back to older receivables that are now being settled or processed for write-off through the proper administrative mechanism.

That distinction matters because tax receivables often look alarming in financial statements. In reality, not all of them should be read as active collection cases. Some are old balances that need to be cleaned up so the city’s financial records stay realistic and orderly.

Processing old receivables also affects data accuracy. With cleaner records, the city can separate what is still worth collecting, what is no longer effective, and what must be closed through official procedures. Without that cleanup, receivables can keep hanging on the books year after year.

For readers, the impact is simple but real. When receivables are orderly, the city’s fiscal room becomes easier to read. Officials can assess revenue potential more clearly, while businesses know more precisely where they stand on their obligations.

Hotel and restaurant taxes remain under watch

At the same time, arrears from the restaurant and food service sector are still being handled by the local tax intensification team. BPPDRD is using a persuasive approach to push business operators to settle their obligations soon.

“For that reason, BPPDRD continues to take a persuasive approach so that culinary sector businesses will soon pay what they owe,” Idham said. The sector is sensitive. Cash flow in food service depends heavily on customer traffic, ingredient costs, and day-to-day economic conditions.

Idham also said overall local tax revenue this year is still running stably, roughly in line with previous years. He said that is a decent result because the economy has not fully recovered.

Not every tax category is moving the same way, though. Hotel tax, for example, has declined compared with the same period last year. Fluctuations like this are common, but they still affect the city’s revenue mix. When one sector weakens, the pressure is felt quickly in the overall target.

One major taxpayer has already made 24 installment payments over two years to settle arrears worth billions of rupiah, BPPDRD said. That figure offers a concrete picture: collection is moving, and part of the debt is already on a more certain payment track.

The case shows that settling local tax arrears does not always happen fast. Sometimes it takes 24 installments. Sometimes it takes two years. What matters now is what happens next: whether more taxpayers keep paying and whether the city can turn old debt into steady revenue again.