Special Committee Admits Local Regulations For Non-Smoking Areas Potentially Reduce Jakarta's Regional Revenue

JAKARTA - Chairman of the Special Committee for the Draft Regional Regulation of Non-Smoking Areas (Raperda KTR) of the DKI Jakarta DPRD, Farah Savira, said that the rules that are being discussed if ratified will have the potential to reduce regional income which will have an impact on the DKI Jakarta Regional Budget.

However, Farah admitted that he did not know the full calculation of the value of the reduction in regional income caused by the ratification of the Raperda KTR. This was revealed after a meeting on the discussion of the Raperda KTR with the DKI Provincial Government.

"Earlier we didn't get the data, that's from Bapenda, that's why we asked Bapenda to present the data, there is no data yet," said Farah at the DKI Jakarta DPRD building, Central Jakarta, Thursday, October 16.

What is clear, according to Farah, is that there is the potential to lose billions of rupiah in entertainment tax revenue in one year because the sector is among those affected by the ban on non-smoking areas in Jakarta.

"It's an entertainment tax, that's the entertainment tax target for next year," said Farah.

In addition, the central government has now cut the profit-sharing fund (DBH) to Jakarta up to Rp15 trillion in the 2026 APBD. Specifically for transfer funds from tobacco excise, Jakarta has the potential to lose Rp1 trillion.

Therefore, Farah hopes that local governments can find a way out to cover the potential loss of regional revenue from the regulation on restrictions and restrictions on cigarettes to be issued.

"Of course this loss is a collective work, so it means an effort, the solution we provide is not only from the Special Committee, it's precisely the entire DPRD, so there must be creative financing that was discussed in Rapimgab, from Bapenda friends, Bapeda, and others. others, we also have to formulate, even in general," said Farah.

On the other hand, Farah admitted that there were proposals to relax the prohibition of selling cigarettes in sensitive facilities, with certain conditions. According to him, this will be considered in the finalization of the draft Raperda KTR discussion.

"Some of the aspirations that came into us were accommodated and from the forum there have also been several proposals whether they are properly restricted to the edge of their school. So some public places are allowed without permission, but still consider what they sell," explained Farah.

Previously, the mass action of street vendors expressed strong protests against the articles on the prohibition of selling cigarettes in front of the DKI Jakarta DPRD Office, Kebon Sirih, last Tuesday, October 7. Yusro, one of the traders, said that the traders asked council members to think about the effects for the people, especially MSME players and hawkers.

"We can make a profit of Rp. 70,000 a day, how much is the profit of cigarettes? How much is the profit of one pack of cigarettes? Rp. 1,000 a day ago 20 packs received Rp. 20,000, compared to Rp. 70 million per month they are members of the council. It's good that they made a regional regulation without thinking about the effects for the people," said Yusro.