Analysis of the Impact of Swallow’s Nest Tax on Local Revenue in the City of Bitung

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FORMOSA NEWS - Manado - Swiftlet Nest Tax in Bitung Falls Short of Potential, Study Reveals Structural Gaps. A 2026 study by Resky Edy Djamal Pandean, Lintje Kalangi, and Syermi S. E. Mintalangi from Universitas Sam Ratulangi finds that tax revenue from the swiftlet nest industry in Bitung City, North Sulawesi, remains far below its economic potential. Published in the Journal of Finance and Business Digital (JFBD), the research highlights fluctuating revenue trends between 2020 and 2024 and identifies systemic weaknesses in tax administration, compliance, and policy implementation. The findings matter because regional taxes are a key driver of local government income and financial independence.

A High-Value Industry With Low Fiscal Returns

Swiftlet nests are a premium commodity widely consumed across Asia, particularly in China, Hong Kong, and Singapore, where they are valued for culinary and medicinal purposes. Indonesia, with its tropical climate and extensive coastline, is one of the world’s major producers. Bitung City is strategically positioned along bird migration routes, making it a favorable location for swiftlet farming. Over the past five years, the number of swiftlet houses has steadily increased. However, the rise in business activity has not translated into proportional tax revenue. This gap between economic potential and fiscal realization reflects a broader challenge in local tax optimization, especially in emerging sectors that lack mature regulatory systems.

Simple Method, Deep Insights

The research team from Universitas Sam Ratulangi applied a descriptive qualitative approach. They combined:

• Interviews with officials at the Bitung City Regional Revenue Agency (BAPENDA).
• Direct field observations.
• Analysis of official tax revenue data from 2020 to 2024.

This method allowed the researchers to capture both numerical trends and real-world administrative challenges, offering a comprehensive view of how the swiftlet nest tax system operates in practice.

Revenue Fluctuations Signal Deeper Problems
The study documents sharp fluctuations in tax revenue over five years:

• 2020: Target Rp2 million, realization Rp0.
• 2021: Target Rp9 million, realization Rp9.6 million.
• 2022: Target Rp10 million, realization Rp13 million.
• 2023: Target Rp20 million, realization Rp10 million.
• 2024: Target Rp60 million, realization Rp6.5 million.

While 2021 and 2022 showed promising growth, revenue dropped significantly in 2023 and collapsed further in 2024 despite a higher target. At the same time, the number of registered taxpayers increased from 5 in 2020 to 10 in 2024. However, only about 30–40% of them consistently paid taxes.

Key Findings: Why the System Underperforms
The study identifies several structural and operational issues:

• Low taxpayer compliance - Many business owners do not regularly report or pay taxes.
• Limited understanding of tax obligations - Some entrepreneurs assume that paying property tax already fulfills all tax responsibilities.
• Weak data collection systems - Many swiftlet businesses remain unregistered due to difficulties in identifying owners.
• Minimal government outreach - There has been little targeted education or socialization about the swiftlet nest tax.
• Insufficient supervision - Limited staff and resources reduce the effectiveness of monitoring and enforcement.
• Unrealistic revenue targets - Targets are often set without considering actual field conditions.
• Business-specific challenges - Swiftlet farming has long production cycles and depends on natural factors, affecting income stability.

The study also notes that a 2024 policy increased the tax rate from 5% to 10% of the selling value. While intended to boost revenue, the change may have discouraged compliance in the absence of adequate communication and support.

Real-World Implications for Policy and Governance

The findings highlight a critical issue in regional fiscal management: untapped revenue potential in niche sectors. Swiftlet nest taxation could become a reliable source of local income if managed effectively. The researchers emphasize that improving compliance is more important than simply increasing tax rates. Without better systems and engagement, higher rates may lead to lower participation.

Author Profiles

Resky Edy Djamal Pandean, S.E. – Researcher in public sector accounting, Sam Ratulangi University

Lintje Kalangi, S.E., M.Si. – Senior lecturer in accounting and regional finance, Sam Ratulangi University

Syermi S. E. Mintalangi, S.E., M.Ak. – Academic specializing in fiscal policy and regional taxation, Sam Ratulangi University

Source

Pandean, R. E. D., Kalangi, L., & Mintalangi, S. S. E. (2026). Analysis of the Impact of Swallow’s Nest Tax on Local Revenue in the City of Bitung. Journal of Finance and Business Digital (JFBD), Vol. 5 No. 1, hlm. 53–72.

DOI: https://doi.org/10.55927/jfbd.v5i1.17

URL: https://journaljfbd.my.id/index.php/jfbd