Hotel Tax In Malang City Slums, Bapenda Highlights Government Budget Efficiency

Malang City Regional Revenue Agency (Bapenda) recorded a decrease in revenue from the tax sector of certain goods and services (PBJT), especially hotel taxes from January to April 2025.

Head of Malang City Bapenda, Handi Priyanto, said that in January 2025 the revenue from hotel taxes was recorded at IDR 7 billion. However, in the following months there was a downward trend.

"Hotel tax revenue from January to April decreased. January was valued at Rp. 7 billion, then in February it became Rp. 4 billion in coma," said Handi in Malang City, Antara, Tuesday, May 20.

He explained, in March 2025 hotel tax revenues fell to Rp3.7 billion, and decreased again in April by Rp3.1 billion.

According to Handi, this decline was influenced by the decline in room reservations and room rent for meeting activities or events. However, the hotel restaurant sector actually showed a fairly good performance, especially during the month of Ramadan.

"Like the fasting moment of Ramadan, many are open together. So it's high in the restaurant, but low in the hotel. This happens in all hotels, not only those who have hall or convention," he said.

One of the factors that also influence, he continued, is the efficiency of the budget, especially from government agencies, state-owned enterprises, and ministries that previously had booked places but then canceled.

"Many activities of ministries, institutions, corporate SOEs have been indented in hotels, but were later canceled due to budget efficiency," he said.

However, Handi is optimistic that this condition will improve as the central government reopens the budget block.

"Efficiency has also been opened at the center to block the budget. Hopefully next month it will stabilize," he said.

He also assessed that a number of large agendas in Malang City could be a driving factor in increasing income from the hotel tax sector, one of which is the 2025 East Java Provincial Sports Week (Porprov) which will take place from June 28 to July 5.

"The provincial government is also a supporter. In addition, the tourism agenda and festivals in Malang City also bring in people," said Handi.

Malang City Bapenda is targeting hotel tax revenues this year of IDR 56 billion. As of May 15, 2025, the realization of hotel taxes has reached IDR 18 billion.