Surabaya City to Raise Advertising Tax to Bridge 2026 Budget Gap

Surabaya city will increase its advertisement tax starting 2026 as part of effort to offset a budget shortfall of about Rp1.3 trillion caused by a reduction in central government transfers. The decision was announced by Mayor Eri Cahyadi after the plenary meeting that approved the 2026 regional budget.

The mayor explained that the tax hike will be complemented by the introduction of exclusive neon‑box advertising locations in strategic city areas, with the electricity for the lighting supplied by the providers so the city does not bear additional utility costs. These spots are intended to generate revenue without increasing municipal expenses.

The additional revenue is expected to cover the remaining deficit after the city can only offset roughly Rp600 billion through efficiency measures. It also supports a broader plan to better utilize municipal assets and achieve fiscal independence.