August 14, 2025 | 07:32 am
Economics lecturer at the Jakarta Veterans Development University, Achmad Nur Hidayat, urged the renegotiation of the social contract between citizens and the government following the tension in Pati, Central Java, Indonesia, which erupted on August 13, 2025. Thousands of residents there demanded the resignation of Pati Regent Sudewo after he raised the Rural and Urban Land and Building Tax by up to 250 percent.
Achmad stated that the government has been collecting taxes without providing adequate public services. "Urging. Taxes are essentially citizenship contributions that should be returned in the form of services," he said when contacted on Wednesday, August 13, 2025.
Additionally, Achmad said that the government's legitimacy in collecting taxes has been questioned. In the case of Pati, when the collection increases without the promise of sufficient public services, it can fracture the contract with the citizens. "Renegotiation is not a ceremony, but a 180-day concrete work agreement, a tariff increase moratorium, tax base audit, and explicit service-for-tax," he said.
According to Achmad, every tax collection from the public should be tied to clear service indicators such as quarterly road repairs, maximum community health center services, and streamlined licensing. "Without moving service meters, there is no moral reason to move tax meters," he stated.
On the other hand, Achmad stated that the situation in Pati is intertwined with local issues there, such as the plan to regroup schools and the plight of former honorary employees at the Regional General Hospital who lost their jobs. "The series of decisions that are felt to add burden are merged in the public perception, where the government demands more but gives less," he said.
Meanwhile, economist from Andalas University, Syafruddin Karimi, said that the uproar in Pati is inseparable from the impact of central government policies. According to Syafruddin, the reduction of regional budget allocations has pressured local governments to boost their own revenue. President Prabowo Subianto previously cut the transfer budget to the regions by Rp 50 trillion in 2025. "This pressure directly burdens the public, triggering tension as seen in Pati," he said when contacted on Wednesday, August 13, 2025.
Additionally, Syafruddin mentioned that the phenomenon in Pati is a reflection of issues in other regions. The central government, he said, must pay serious attention, especially in fairly managing central and regional fiscal matters. "The risk of social instability can spread. Spillover effects from Pati can spread to other regions if fiscal pressure and similar policy responses continue," he said.
Syafruddin added that the situation in Pati is a result of government policies taken without public participation. Moreover, the increase in the land and building tax is not accompanied by adequate public services. "Without a balance between tax benefits and the burden borne by the public, the legitimacy of government tax policies will weaken and open up social resistance. Policy of raising the land and building tax without involving public participation gives the impression of arrogance of power. This condition indicates that the relationship between fiscal policies and public trust is at a vulnerable point," he said.
On Wednesday morning, thousands of residents demonstrated in front of the Pati Regent's Office. The protest escalated and dozens of residents were injured. Police fired tear gas and water cannons at the crowd demanding the resignation of Pati Regent Sudewo. In the midst of the demonstration, Sudewo appeared riding in a police tactical vehicle or a "tank-like" vehicle.
Sudewo, wearing a white shirt and black songkok, emerged from the top hatch of the tank-like vehicle. The vehicle moved to the front of the Pati Regent's Office.
He then addressed the demonstrators using a megaphone. "I sincerely apologize," said the Gerindra Party politician. However, Sudewo's arrival was greeted with thrown bottles of mineral water. Security personnel shielded Sudewo using riot shields. Sudewo then re-entered the vehicle.
Jamal Abdun Nashr contributed to the writing of this article.
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