Bojonegoro Regency Requests Transfer of Oil Tax Objects to Local

Bojonegoro Regency in East Java submitted a request to the central government on 3 December 2025 to transfer certain oil‑related PBB‑P5L assets to the PBB‑P2 category. The assets include supporting facilities of the Banyu Urip oil field operated by ExxonMobil Cepu Limited, such as a flyover, parking area, pipelines and water intake channels.

PBB‑P5L is a land‑and‑building tax applied to sectors like plantations, mining and oil‑gas, with 20 % of the revenue shared with the central government. Reclassifying these assets as PBB‑P2 would allow the full tax amount to remain with the regency, a model previously adopted by Cilacap Regency.

Approval could raise Bojonegoro’s realized revenue from the allocated Rp826 billion for 2025, which had reached only Rp584 billion, and help meet the 2026 regional budget target of Rp4.5 trillion. The measure aims to boost fiscal autonomy without imposing additional tax burdens on residents.