Regulatory conformity as a foundation for revenue performance: Property tax (PBB-P2) administration in Bitung City, Indonesia

Rural and Urban Land and Building Tax (PBB-P2) is a key local tax, yet many local governments fall short of their collection targets after its administration was devolved to the regions and local tax rules were restructured by Law No. 1 of 2022 on Fiscal Relations between the Central Government and Regional Governments. This study analyzes the PBB-P2 collection system and procedures at the Regional Revenue Agency (BAPENDA) of Bitung City and assesses how procedural conformity relates to revenue performance in 2021–2025. Using a qualitative descriptive single-case design, primary data came from semi-structured interviews with three purposively selected BAPENDA officials, complemented by regulations, target–realization records, and Tax Payable Notice (SPPT) data. Each procedural stage was compared with Bitung City Regional Regulation No. 1 of 2024 and Mayoral Regulation No. 63 of 2017. All stages are carried out formally, but registration, assessment, and billing conform only with qualifications and data collection is only partly evidenced: mass collection was skipped in some years for lack of budget, and billing relied on notification rather than graded enforcement. Revenue realization never reached the target, ranging from 75.19% (2023) to 95.64% (2025), and only 42.30%–57.53% of SPPT issued were paid each year. Regulatory conformity is a necessary foundation but does not by itself secure revenue performance, which also depends on keeping the tax base current, resourcing field work, and enforcing payment. The study contributes stage-by-stage evidence on post-decentralization PBB-P2 administration and identifies data updating, graded arrears billing, and targets anchored to billing potential as priorities.