Increase socialization and education programs

Oct 13, 2025 by talynt.org 39 views

Analysis of Potential Regional Levies as a Source of Regional Original Revenue (PAD) in Deli Serdang Regency

Introduction

Regional levies have become a crucial source of revenue for local governments in Indonesia. The Deli Serdang Regency, located in North Sumatra, is no exception. This study aims to analyze the development of the potential of regional levies in Deli Serdang Regency during the eight-year period from 2009 to 2016. The method used in this study is descriptive, which focuses on calculating the contribution of regional levies to local revenue (PAD) and measuring Target Achievement Level (TPT).

Background

Regional levies are a type of tax imposed by local governments on their residents. The revenue generated from levies is used to fund various public services and infrastructure projects. In Indonesia, regional levies are a significant source of revenue for local governments, accounting for a substantial portion of their total revenue. However, the contribution of regional levies to local revenue (PAD) in Deli Serdang Regency has been relatively low, averaging around 13.56% over the past eight years.

Methodology

This study used a descriptive method to analyze the development of the potential of regional levies in Deli Serdang Regency. The data used in this study were obtained from the Deli Serdang Regency's financial reports and other relevant documents. The analysis focused on calculating the contribution of regional levies to local revenue (PAD) and measuring Target Achievement Level (TPT).

Results

The results of this study showed that the contribution of regional levies to PAD in Deli Serdang Regency over the past eight years had an average of 13.56%. This figure shows that the role of levies in supplying regional income is still relatively low. In addition, the target achievement rate (TPT) achieved during the same period reaches an average of 98.75%. Although the TPT figure is close to the target, this shows that the potential for levies that exist has not been managed optimally.

Discussion

The low contribution of levies to PAD can be caused by several factors, including the lack of public understanding of the obligation to pay for levies, the lack of socialization from the government, as well as leakage in the retribution collection system. The lack of public understanding of the obligation to pay for levies can be attributed to the limited awareness and education of the community about the importance of paying levies. This can be addressed by increasing socialization and education programs conducted by the government.

Strategies to Increase the Potential of Regional Levies

To increase the potential of regional levies, strategic steps are needed. First, local governments must increase socialization regarding the importance of payment of levies and their impact on regional development. Second, there needs to be an evaluation of the existing levy collection system, to ensure that there is no leak that results in the potential for revenue not achieved. Third, the development of digital applications or systems in collection of levies can also facilitate the process and provide transparency for the community.

Conclusion

Overall, the potential for regional levies in Deli Serdang Regency still holds opportunities to be improved. With appropriate efforts and strategies, it is expected that the contribution of regional levies can increase and have a positive impact on local revenue, as well as strengthen sustainable regional financial autonomy.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase socialization and education programs: Local governments must increase socialization and education programs to raise awareness and understanding of the importance of paying levies among the community.
Evaluate the existing levy collection system: There needs to be an evaluation of the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved.
Develop digital applications or systems: The development of digital applications or systems in collection of levies can facilitate the process and provide transparency for the community.

Limitations of the Study

This study has several limitations. First, the data used in this study were obtained from the Deli Serdang Regency's financial reports and other relevant documents, which may not be comprehensive or accurate. Second, the analysis focused on calculating the contribution of regional levies to local revenue (PAD) and measuring Target Achievement Level (TPT), which may not capture other important aspects of regional levies.

Future Research Directions

Future research should focus on exploring other aspects of regional levies, such as the impact of levies on regional development and the effectiveness of different strategies to increase the potential of regional levies. Additionally, research should be conducted to identify the root causes of the low contribution of levies to PAD and to develop effective solutions to address these issues.

References

Deli Serdang Regency's Financial Reports (2009-2016)
Indonesian Government's Regulation No. 41 of 2014 on Regional Levies
World Bank's Report on Regional Levies in Indonesia (2015)

Appendix

The appendix includes additional information and data that support the findings of this study.
Frequently Asked Questions (FAQs) about Regional Levies in Deli Serdang Regency

Q: What are regional levies?

A: Regional levies are a type of tax imposed by local governments on their residents. The revenue generated from levies is used to fund various public services and infrastructure projects.

Q: Why are regional levies important?

A: Regional levies are an important source of revenue for local governments, accounting for a substantial portion of their total revenue. They help fund public services and infrastructure projects that benefit the community.

Q: What is the current contribution of regional levies to local revenue (PAD) in Deli Serdang Regency?

A: The current contribution of regional levies to local revenue (PAD) in Deli Serdang Regency is around 13.56%, which is relatively low.

Q: What are the factors that contribute to the low contribution of regional levies to PAD?

A: The factors that contribute to the low contribution of regional levies to PAD include the lack of public understanding of the obligation to pay for levies, the lack of socialization from the government, as well as leakage in the retribution collection system.

Q: How can the contribution of regional levies to PAD be increased?

A: The contribution of regional levies to PAD can be increased by increasing socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluating the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and developing digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.

Q: What are the benefits of increasing the contribution of regional levies to PAD?

A: Increasing the contribution of regional levies to PAD can have a positive impact on local revenue, as well as strengthen sustainable regional financial autonomy.

Q: What are the challenges in implementing regional levies in Deli Serdang Regency?

A: The challenges in implementing regional levies in Deli Serdang Regency include the lack of public understanding of the obligation to pay for levies, the lack of socialization from the government, as well as leakage in the retribution collection system.

Q: How can the challenges in implementing regional levies be addressed?

A: The challenges in implementing regional levies can be addressed by increasing socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluating the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and developing digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.

Q: What is the role of the government in implementing regional levies in Deli Serdang Regency?

A: The government plays a crucial role in implementing regional levies in Deli Serdang Regency. They must increase socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluate the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and develop digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.

Q: What is the impact of regional levies on regional development in Deli Serdang Regency?

A: Regional levies have a positive impact on regional development in Deli Serdang Regency. They help fund public services and infrastructure projects that benefit the community, such as education, healthcare, and transportation.

Q: How can the impact of regional levies on regional development be increased?

A: The impact of regional levies on regional development can be increased by increasing the contribution of regional levies to PAD, which can be achieved by increasing socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluating the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and developing digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.

Q: What are the future directions for regional levies in Deli Serdang Regency?

A: The future directions for regional levies in Deli Serdang Regency include increasing the contribution of regional levies to PAD, which can be achieved by increasing socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluating the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and developing digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.

Q: What are the recommendations for regional levies in Deli Serdang Regency?

A: The recommendations for regional levies in Deli Serdang Regency include increasing socialization and education programs to raise awareness and understanding of the importance of paying levies among the community, evaluating the existing levy collection system to ensure that there is no leak that results in the potential for revenue not achieved, and developing digital applications or systems in collection of levies to facilitate the process and provide transparency for the community.