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View all search resultsen months into his term, President Prabowo Subianto’s trademark austerity measures, designed to conserve funds for flagship programs like the free nutritious meal initiative, have finally collided with local realities.
Over the last few weeks, demonstrations have rocked Pati regency in Central Java after its regent, Sudewo, who hails from Prabowo’s Gerindra Party, announced a steep hike in the region’s building and property taxes (PBB) by up to 250 percent for the rest of 2025. Sudewo claimed that his regency’s administration is currently facing a shortage in funds and pointed to the PBB, which has been untouched since 2011, as a potential source of revenue for the regency’s budget.
Based on data from the Finance Ministry, Pati’s 2025 regional budget (APBD) expects Rp 2.87 trillion (US$180 million) in total revenue, of which Rp 548.51 billion comes from regional own-source revenue (PAD), while the rest relies heavily on transfers from the central government at Rp 2.18 trillion and from other regions at Rp 132.22 billion. As of August, the regency had only been able to realize Rp 1.78 trillion, or 62.3 percent of its target, with Rp 363.02 billion from PAD, Rp 1.34 trillion from central transfers, and Rp 79.84 billion from other transfers.
Needing to ramp up its stream of income rapidly, Sudewo took the instant cash cow approach through his 250 percent tax hike. Coupled with his combative attitude, the proposal was not received well by his constituents and resulted in several demonstrations, which started as calls to reverse his decision but became chants for his impeachment.
Although Sudewo eventually abandoned his proposed tax initiative amid mounting public pressure, the people of Pati continued to mobilize against Sudewo, showing up in numbers with a reported 100,000 protestors rallying against the regent on Aug.13.
At one point in the protest, Sudewo had to be barricaded behind riot shields on top of an armored police car after receiving an onslaught of flip-flop sandals and plastic bottles thrown at him, along with several placards in the crowd held up high with the words “Impeach Sudewo.”
In January, Prabowo issued his first presidential instruction, Inpres No. 1/2025, which ordered cuts to regional transfers of up to Rp 50.6 trillion from the Rp 919.87 trillion previously allocated last year. While meant to allocate state funds for priority programs and fight inefficiencies, the ruling forced regional administrations to make up for the shortfall on their own.
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