MEDAN | INDATANEWS.COM - North Sumatra's Acting Regional Secretary, Timur Tumanggor, has highlighted the strategic importance of the province's Regional Revenue Agency (Bapenda) in securing sustainable development. As the institution responsible for generating regional revenue, Bapenda must maximise the potential of the province's own-source revenue (Pendapatan Asli Daerah, PAD), particularly as mounting budgetary pressures arise from declining financial transfers from the central government.
Tumanggor made the remarks during the confirmation and appointment of 15 administrators at the middle management level (Echelon III) and supervisory officials (Echelon IV) within North Sumatra's Regional Revenue Agency. The event took place on Friday, 23 October 2026, in the agency's auditorium on Jalan Sisingamangaraja in Medan.
The appointments were made under a decree issued by North Sumatra Governor Muhammad Bobby Afif Nasution. During the ceremony, Tumanggor read out the governor's message, which emphasised Bapenda's central role in financing development across several sectors, including infrastructure, the economy, social affairs, culture and tourism.
"Bapenda is different from other regional agencies. They are all the heart that drives development in North Sumatra Province. The regional revenue we manage comes from seven types of taxes, as well as regional charges collected by 15 regional government organisations,"
Timur Tumanggor said while reading the governor's message.
According to Tumanggor, the provincial government's ability to sustain development depends largely on how consistently it maximises available revenue sources. Bapenda must therefore improve tax and levy administration while ensuring that all revenue-enhancement measures are measurable, transparent and compliant with the law.
Budget Pressures Require Higher Regional Revenue
Tumanggor explained that the challenges facing public financial management were intensifying amid fiscal consolidation and declining transfers from the central government. In 2027, North Sumatra is expected to face a reduction of Rp1.125 trillion in central government transfers.
The development will also affect the North Sumatra Provincial Budget (Anggaran Pendapatan dan Belanja Daerah, APBD). While the budget stood at Rp13.101 trillion in 2026, it is projected to fall to Rp11.929 trillion in 2027.
The decline is forcing the provincial government to strengthen its financial independence so that it can continue funding priority programmes and meeting the needs of the public. Under these circumstances, increasing own-source regional revenue is an important way to preserve the government's financial capacity to carry out development initiatives.
Tumanggor urged all Bapenda employees to respond to these challenges by accelerating work processes and improving the efficiency of efforts to identify additional revenue sources. Simply continuing existing routines would not be enough. Instead, the agency needed to conduct a comprehensive review of the revenue sources it currently manages.
Bapenda must identify untapped potential in taxes and regional levies, improve collection procedures and systematically use data to develop revenue-enhancement strategies. This approach is expected to help the provincial government formulate more targeted measures and strengthen its financial capacity over the long term.
TIMUR TUMANGGOR CALLS FOR DATA-DRIVEN PERFORMANCE FROM BAPENDA OFFICIALS:
Timur Tumanggor urges newly appointed administrators and supervisory officials to review their performance and identify regional tax and levy potential systematically and measurably. (PHOTO: Imam Syahputra)
New Officials Told to Act Quickly and Use Data
Addressing the newly appointed officials, Tumanggor urged them to organise internal coordination immediately and review the performance of their respective units. This initial step was essential to ensure that every official clearly understood their responsibilities, performance targets and the most pressing issues requiring attention.
He also stressed the need to systematically map the potential of all tax and levy sources. Each unit must have a clear plan, measurable performance indicators and reliable data to provide a sound and transparent basis for decision-making.
Alongside increasing revenue, Bapenda must improve the quality of its services to the public. Tumanggor called on the agency to introduce innovative tax services that are fast, practical, transparent and easily accessible to taxpayers.
Simpler services are an important factor in encouraging the public to fulfil its tax obligations. By streamlining procedures and providing responsive assistance, the provincial government can strengthen public trust while encouraging the timely payment of taxes and regional levies.
Tumanggor also reminded all officials of the need to maintain good governance, transparency and accountability. He emphasised that every employee must perform their duties with integrity and avoid all forms of corruption.
In his view, efforts to increase own-source regional revenue must go hand in hand with better governance. The provincial government needs not only higher revenue but also responsible financial management that is transparent, accountable and delivers tangible benefits to the public.
TRANSPARENT TAX SERVICES A PRIORITY FOR NORTH SUMATRA'S BAPENDA:
Timur Tumanggor calls on North Sumatra's Regional Revenue Agency to provide fast, practical, transparent and easily accessible tax services for the public. (PHOTO: Imam Syahputra)
Strong Leadership to Sustain Regional Development
Tumanggor further urged the officials to develop strong, supportive leadership that motivates employees. They should foster a working environment that encourages collaboration, discipline and a shared commitment to achieving established targets.
Cohesive and effective leadership is an important factor in organisational performance, he said. With effective coordination and clearly assigned responsibilities, individual units can implement their programmes more effectively and respond more quickly to challenges in regional revenue management.
"Under the leadership of Bapenda chief Sutan Tolang Lubis, I am confident that North Sumatra's Regional Revenue Agency will continue to grow stronger. These confirmations and appointments represent a vote of confidence from Governor Bobby Nasution. Make the most of your abilities, improve services and do not betray the trust placed in you," Tumanggor emphasised.
He expressed hope that the newly appointed officials would quickly familiarise themselves with their respective areas of responsibility and gain a clear understanding of their core duties. They were expected to make a tangible contribution through improved performance, stronger oversight and consistent efforts to maximise regional revenue sources.
Higher own-source revenue is expected not only to strengthen the financial capacity of the North Sumatra provincial government but also to safeguard the continuity of development programmes and improve public welfare. With budgetary resources becoming increasingly constrained, Bapenda's performance will be crucial in ensuring that development initiatives continue to reflect the region's priorities and the needs of its people.
(IDNC)REPORTER: Ahmad Zulfikar | EDITOR: Fik Sagala