Does the opsen scheme reduce provincial tax effectiveness? Motor vehicle tax and title transfer fee in North Sulawesi Province

This study examines the effectiveness of motor vehicle tax (PKB) and motor vehicle title transfer fee (BBNKB) revenue in North Sulawesi Province over 2021–2025, a period that spans the implementation of Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD) and the introduction of the opsen (tax-sharing surcharge) scheme. A descriptive quantitative approach is used, supported by qualitative data. Effectiveness is measured as the ratio of revenue realization to target and classified using the criteria of Ministry of Home Affairs Decree Number 690.900.327 of 1996. Target, realization, and opsen data were obtained from the Regional Revenue Agency (BAPENDA) of North Sulawesi Province, and interviews with three BAPENDA officials were used to interpret the results. PKB effectiveness remained in the “effective” category in every year (90.43%–96.89%) except 2022, when it reached 101.22% (“very effective”). BBNKB effectiveness was more volatile (79.82%–96.77%) and fell to “less effective” (79.82%) in 2025, the first year of full opsen implementation. Adding the opsen revenue distributed directly to district/city governments (Rp187.65 billion), combined PKB and BBNKB revenue in 2025 reached Rp698.52 billion, about 1.1% above 2024. According to the informants, the 2025 declines largely reflect this direct distribution, which removes part of the revenue from provincial records, although weaker new-vehicle transactions also affected BBNKB. The findings imply that provincial effectiveness ratios from 2025 onward should be interpreted alongside opsen revenue, and that BBNKB collection needs particular attention. This study contributes by jointly assessing PKB and BBNKB effectiveness against targets during the opsen transition.