Bandung to Raise Restaurant and Property Taxes in 2026

The Bandung city government, represented by Mayor Muhammad Farhan, signed the 2026 KUA‑PPAS agreement that will guide the drafting of the 2026 regional budget (RAPBD). The administration plans to raise the Restaurant Tax (PB1) and is also reviewing a possible increase in Property Tax (PBB) for the 2026 fiscal year.

The measures respond to an estimated Rp600 billion reduction in central‑government transfers, prompting a need to boost the region’s own‑source revenue (PAD). Bandung will focus on higher taxes from restaurants, hotels and entertainment venues and will enhance tax monitoring and digital payment systems.

The mayor said any tax hikes will be phased in to avoid overburdening businesses while the city pursues cost‑saving cuts in operational spending. The approach aims to preserve fiscal stability without compromising public services.