STRATEGY FOR INCREASING REGIONAL FINANCIAL INDEPENDENCE THROUGH OPTIMIZATION OF TAX AND RETRIBUTION POTENTIAL WITH SWOT ANALYSIS

Abstract

Mandate Law No. 23 of 2014 and Law No. 33 of 2004, each region manages its economic resources in a decentralized manner in order to finance regional development. The phenomenon that occurs in the city of Palu, local revenue (PAD), decreases every year, namely from taxes and fees, so this research aims to find the right strategy formulation to increase PAD which will have an impact on regional financial independence. This research uses primary data and secondary data. Primary data comes from observations and interactive discussions, while secondary data comes from BPS data, regional financial reports and other supporting data. The research period was carried out for 6 months, namely May to October 2020. The research location was in the city of Palu, Central Sulawesi, Indonesia. To achieve the research objectives, the data obtained were analyzed using descriptive methods and SWOT analysis The strategy for managing local taxes is in Quadrant 3, which is to use the Turn Around Strategy. This means that by using a turnaround strategy, local governments must make changes, creativity, innovation to overcome all indicators of weakness. In this condition, local governments still have room to move with regulations and improvements to facilities and infrastructure to support the use of integrated IT, especially in increasing efficiency and tight control units, and optimizing the work of the advocacy team. This case has both positive and negative sides. The positive side can be a signal for the Regional Planning Agency (Bappeda) to seek legal loopholes for more effective supervision and services, although the regional tax system applies a self-assessment system (SAS) in regulation. SAS can run effectively when taxpayers have high honesty, transparency and have high discipline in their books The Regional Levy Management Strategy in Quadrant 3 is appropriate to use the Turn Around Strategy. The fact that occurs on the basis of quantitative calculations, parking management is in a threatened position, meaning that it is in quadrant 3 in a less profitable position (WO) with the highest value. This means that the turnaround strategy inevitably has to change. Some actions that must change according to the SWOT mapping in quadrant 3 are as follows: (a) Commitment, willingness, hard work, honesty of all parties involved, to overcome all indicators of weakness, so that PAD can be increased, especially from the parking fee sector of (24 , 21%); (b) The Mayor's Regulation regarding parking can be reviewed, if it is not in accordance with the facts in the field; (c) SOPs are immediately ratified so that they can be used as references; (d) The coordinator and collectors are reviewed whether they do not conflict with the mayor's regulations; (e) Enforce a cash ticket system (for roadside parking); (f) As an explanation, other regional mayor regulations that have been effective in applying them can be studied as examples. The limitations of this study in accessing data in the aftermath of a disaster, but the findings of this study can be implemented in the Palu City government and other areas that have regional financial problems. In addition, the results of this study add to knowledge about the appropriate formulation of strategies to anticipate regional problems in realizing financial independence. The origin of this research is based on existing data in Palu City and makes comparisons of strategies on regional income from taxes and levies.