The Effectiveness of PBB-P2 and BPHTB and Its Contribution to the Regional Original Revenue of DKI Jakarta Province

This study analyzes the effectiveness and contribution of the Rural and Urban Land and Building Tax (PBB-P2) and the Land and Building Rights Acquisition Duty (BPHTB) to the Regional Original Revenue (PAD) of DKI Jakarta Province from 2020 to 2023. Using a quantitative descriptive approach, data from the Jakarta Regional Revenue Agency (BAPENDA) were evaluated through effectiveness and contribution ratio analyses, guided by criteria from the Indonesian Ministry of Home Affairs. The results indicate that PBB-P2 and BPHTB revenues were generally effective, with average effectiveness rates of 89.62% and 87.59%, respectively. However, their contributions to PAD remained limited: PBB-P2 contributed an average of 20.19% (medium category), while BPHTB contributed only 12.61% (low category). Despite meeting annual targets in 2023, both taxes exhibited fluctuating performance in prior years, reflecting gaps in revenue potential. The findings suggest that while these taxes are administratively effective, their fiscal significance to Jakarta’s PAD remains constrained. To enhance revenue performance, the study recommends refining tax target evaluations, improving taxpayer compliance through awareness campaigns, and optimizing regional tax potential. This research underscores the need for policy adjustments to strengthen fiscal decentralization and reduce reliance on central transfers in Indonesia’s capital region.