Effectiveness and contribution of retribution and local taxes to the increase of local revenue of DKI Jakarta

Abstract

Purpose: This study aims to analyze the effectiveness and contribution of local levies and taxes to increasing local revenue. This analysis is based on Article 5 of Law Number 33 of 2004 concerning Regional Original Revenue and Law Number 28 of 2009 concerning Regional Taxes, and Regional Levies applied in DKI Jakarta for the 2017-2019 Period. Methods: The method used in this research is descriptive qualitative research with the associative process. For data collection, researchers conducted oral interviews, observation, and documentation. In collecting data, the subject of this research is the DKI Jakarta Regional Revenue Agency, and the object is the 2017-2019 Regional Original Revenue sourced from local levies and local taxes in DKI Jakarta. Findings: The results of this study indicate that Regional Retribution Revenue and Regional Tax Revenue in DKI Jakarta are effective in increasing local revenue. The contribution of local tax revenue in DKI Jakarta is outstanding. However, the contribution of local levy revenue in DKI Jakarta is less significant in increasing local revenue. Practical Implications: This study shows that local levy and tax revenues in DKI Jakarta effectively increase local revenue, with an excellent contribution of local taxes. However, the contribution of local retribution is still minimal, so the government needs to pay more attention to this sector. To maximize own-source revenue, the government of DKI Jakarta is advised to improve the management strategy of retribution and create innovations that attract public participation in retribution collection.